In UK economics, the housing market refers to the national supply and demand for houses. Key metrics of the housing market are average house prices and their trends. The UK housing market refers to all housing, including privately owned homes, privately rented and local authority rented accommodation, and managed properties.
A change in house prices affects the value of household wealth, creating a positive or negative wealth effect. A positive wealth effect means that, following a rise in house prices, the ratio of the market value of the property to the debt on that property (i.e. mortgage) rises, creating an increase in equity. This can trigger housing equity withdrawal and can be a significant boost to consumer spending.