PESTEL Analysis - The Real Estate Market in the UK

Extract

[...] As a normal loan, it will be paid back in the long run. It is important to mention that aside from the minimum deposit usually made by the UK citizens, the loan will be taken under a certain interest rate, dependent of the economic situation within the country or region. The fact that the Central Bank always regulates the interest rate in order to avoid inflation, the real estate market is indirectly affected. According to the statistics and studies made by the experts of this field, it is obvious that the interest rate must be contained in a certain range in order to allow the contractors of the mortgage to pay back their loan. [...]

[...] Technological As technology is being used in various fields, the same is for the case for the real estate industry. In fact, nowadays, we often talk about "Augmented Reality" which is a way that the technology allows the people, including that of the UK, to have a prior experience before buying a house. In fact, you will visit the house without being physically there. It is very real and important in cases where a potential buyer is trying to relocate from one town to another and does not have time to come and see the house physically. [...]

[...] This is why the estimation value of this market by 2025 is worthy. On the other side, there are still a lot to improve. In fact, some lands are not exploited due to some restrictions. These policies must be revised in order to reduce the housing shortage. Plus, the increase of the population in the country is a factor that the UK government must consider. Trying to limit the number of births for example might help the house shortage in the long run. [...]

[...] So, buyers usually play with the price in order to compete with others. Therefore, the owners of the properties always adapt to the situations by proposing a diversity of houses with different traits. Moreover, in the UK, in order to adapt the green factor, the concept of building sustainable houses that could be combined with other activities such as education, healthcare, etc. This is to reduce social problems in the future. As mentioned earlier, in this section, everything depends on the population. [...]

[...] If they fail to do so, legal pursuits will be launched against them. Based on this, house prices can increase or decrease. That way, there will be an influence on the real estate market. Conclusion In conclusion, we can say that the real estate market in the UK is profitable. The strategies used in each single factor are strong enough to make the industry profitable. The success of this market is from the government policies and restrictions that are put to place. [...]