House prices in the UK have seen very swift growth over recent years, the sudden surge is said to have started back in the late 1980s. There has been periods where the prices of homes haven't increased significantly, only slightly and steadily and rarely any evidence of decline. However there is one major occurrence which is 2008 to most recently. The graph shows that the growth went below 0% which suggests a significant decrease in house prices.
In addition the graph shows that even with different methods of calculating the growth there seems to be one agreed path that house prices have taken.
What factors affect the housing market? Factors such as demography affect the valuing of homes, this is as demography is the scientific study of the human populations. There are certain pieces of information that can be obtained such as population size, arrangement, growth and distribution.
Once factors such as these have been considered values can then be given accordingly, this is as factors such as these affect demand and therefore supply. Factors like economic variables also effect what can occur which will be looked at in this write up.
In the Last 10 years, the UK housing market has experienced a financial crisis in which prices have risen in the fastest rate since 10 years ago. They experienced sales which were 4 years high, and managed to sustain recovery in the property market. Price balance on UK housing has risen by 54% since the year 2002, however it was predicted to only experience a rise of 45%, and this shows a benefit. As housing prices increase the likelihood of this is that supply of houses will make an increase, and if housing prices are not sustained,