Over the decades United Kingdom (UK) have been experiencing problems with housing

affordability. The rising effect have caused the younger generations with low incomes to be

locked out from home ownership. This status has forced them to live in poor quality private

rental housing. Unfortunately, the onset of corona virus and Brexit have made things worse

leading to a rise in housing crises in UK. Brexit refers to the decision of the UK to leave the

European Union following a referendum on 23 June 2013 (Tanrıvermiş, 2020).

According to reports by Land Registry, the UK housing market has been experiencing a state of

stagnation since 2016 (Tanrıvermiş, 2020). There has been a gradual decrease in growth rate of

the market in the past three years. in 2014 and 2016 the stamp duty changes increased the prices

for owners of higher-value homes and second homes combined. As a result of uncertainty

caused by Brexit report, the market has seen a movement to the edge. in areas where housing is

scarce, the slowdown movement of the market has favored buyers seeking to get on the property

ladder for the first time. The south eastern parts of the country are majorly enjoying this. For

more than a year, there has been a gradual decrease in house prices in these markets.

Brexit saga have affected the market behavior especially the buying characteristics with most

buyers opting to withhold their buying choices until the saga resolved. Serious consequences

may be experienced by the UK economy following a sudden exit from the European Union. This

action would in turn have some significant impact in the housing market. After a long period of

crushed activity in the housing market, the deadline set in the Brexit report indicates a significant

turning to the economy upon decisions to leave the EU (Malik et al., 2019). Leaving with no

deal or accepting a form of withdrawal, would affect the mode of transmission out of the block.

prevailing scenario determine the house prices to be set, considering that potential uncertainties
would be solved. Adopting further delay before the actual exit is a form of strategy that could be

adopted to help reduce the risk of uncertainties that would come with this decision.

The economic effects brought about by Brexit were a major area of discussion during and after

the referendum on the status of membership of the United Kingdom in the European Union

(Haider Ali Zaidi et al., 2017). According to economists, adopting Brexit would significantly

reduce the UK's real per-capita income level. Stakeholders who supported the remaining of UK

in the EU, argued that there would be a lot of benefits which were to be fetched out if they stayed

bearing in mind that membership in the EU had a significant positive impact on trade. Supporters

of withdrawal from the EU argue that ceasing net contributions to the EU would allow for tax

cuts or increases in government spending. According to one report, the Brexit vote increased UK

inflation by 1.7 percentage points in 2017, costing the average British household £404 per year.

According to studies conducted in the year 2018, the burden imposed by the Brexit vote to the

economy were estimated to be 2% of the total GDP value. In addition, according to analysis by

Financial Times published in December 2017, the Brexit referendum reduced the UK national

income by 0.6%. again, it was noted that the uncertainties associated with Brexit lead to a

decrease in business investments by 6 percent. The uncertainties resulted too to a reduction in

jobs by about 1.5 percentage. In line with forecasts made concerning short term macroeconomic,

the results showed that results from the referendum would cause more market volatility and

reduction in consumer trust. However, these forecasts are sometimes regarded to as inaccurate,

because they are predictions from the banks other than academic economists.

According to Economists, leaving the European Union would have varying ranges of negative

impact on the British economy in the medium and long term. In 2016, economists polled without

object and agreed that Brexit would certainly decrease the UK's real per-capita income.
According to surveys of current academic research conducted in 2019 and 2017, reliable figures

for the UK's GDP losses ranged from 1.2–4.5 percent and an expense of 1–10 percent of the

country's income per capita. These figures vary depending on whether the United Kingdom opts

for a hard or soft Brexit. The UK government's own Brexit report was produced in January 2018,

showing that, depending on the exit scenario, UK economic growth will be stunted by 2–8% for

at least 15 years following Brexit. It is believed by most economists that EU membership has a

strong positive impact on trade, and that the British would suffer as a result of its exit. According

to a report published by the University of Cambridge, if the UK reverted to world trade

organization laws, a third of British exports to the EU would be tariff-free, while the other

quarter would face high trade barriers and other exports risk tariffs(Haider Ali Zaidi et al.,

2017) .

Despite the lockout measures still in effect, property markets are free in England, Scotland,

Wales, therefore the estate agents conduct in-person house viewings and buyers are able to return

home. since July last year, the UK property market has been on the rise and this rise have been

brought about temporary reduction in stamp duty by the government. Extension in the deadline

for paying taxes will cause an extra income realization by the revenue authority (Tanrıvermiş,

2020). Tax reduction varies from one region to the other and this will help save about 15000

sterling pounds in tax if action is taken before the deadline. Number of transactions increased in

large margins following the effect of tax cut off policy. According to preliminary data from HM

Revenue and Customs (HMRC), 147,050 transactions were completed in February this year, up

49 percent year over year.

Although there has been a development of hope in the real estate market following adoption of
different strategies to solve house crises, there are still contraindications in place that are offering
barriers to the breakthroughs hoped for. According to a research conducted by Rightmov, the
average time taken to negotiate a sale in February this year was 60 days. This was a reduction
from the previous year which stood at 67 days but still the expected low limit mark was not
achieved nevertheless. Government financial support schemes set aside for coronavirus
pandemic and the imposed cut off of the stamp duty cut would lead to are duction in the house
prices. The reduction was expected to continue on until the recession ended. According to
Savills, one of the real estate agents, predicted that house prices would increase by 4% this year.

An analysis of how resources are limited despite eternal human needs, through property rights, is
one of the critical dynamics in the field of economics through property rights, is analyzing the
limitation of resources required to meet human needs. The efficient distribution of limited
resources depends on who their rights to use belong. Once a transaction is completed, a change
in property rights may be observed.
Determination of prices in the market is dependent on naming values of property rights.

Determination of whether property and production factors in an economy are hired or used by

the market is a critical factor in addressing a variety of market issues (Oizides and Amvoukas,

2005).Several studies have been conducted to evaluate the consequences of institutional

structures on economic growth rates. Property protection on investments have a wide range of

importance. However, the most crucial impact of property right is the introduction and allowance

of free use of resources. This then leads to eradication of monopoly role of the government and

reduction in the spreading of economic power throughout the societies.

The choice of property rights by a country is one of the main factors that influence the economic

growth rates. Various property rights that have been developed have significant role in economic

development of a country due to the changes in market and administration structure (Oizides and

Amvoukas, 2005). Another factor that should be addressed closely by the government, is the

fluctuations in market prices that in turn affect the economy.

Development of rules to govern the use of resources in a country which might be insufficient to

sustain the needs present is one of the strategies that should be implemented. Property rights
therefore are measures that are developed to guide and regulate the use of resources hence

ensuring effective and efficient use of resources in a country. These rights define the terms to

organizations. In contrast to other property, persons may legate or exclude other persons and use

different mechanisms of sanctions in the use of rights.

The Government of United Kingdom have been committed to increase the annual housing

delivery to an average of 300,000 houses in every year. This action then would see the

government achieve the target of building one million new homes by the end of 2024.

Nevertheless, this agenda has been a challenge to the government which has contributed to an

increase in homelessness among the citizens of this country. In addition, the outbreak of Corona

virus has paused a major challenge in carrying out this agenda (Tanrıvermiş, 2020). The

construction industry that was expected to steer this development was greatly hit by the

pandemic bringing to a stop all the operations. Again, further complications were brought about

by the onset of Brexit uncertainty and safety concerns involving high profile building. The

government’s goal was to maintain the operation of critical construction projects operational.

Upon the break out however, many construction companies stopped working on sites following

strict insulation measures imposed by the government.

One of the main concerns experienced in the construction industry is the delays in resuming

operations. Many projects are sensitive to time as clear budgets and timeframes are always

carefully developed before the initial phases of operations commence. Therefore, a delay in the

operation or interruptions in their progress would have significant impact in the quality of work

delivered and also other financial implications.

Following constant pressure from backbench MPs, the housing secretary was forced to urge

more builders to return to work. In response to this, one of the UK's second largest building
companies announced that its workers were to resume to their construction sites by July last year.

Builders in England therefore were allowed to work flexible construction hours. Arrangements

were also put in place to help companies deal with cash flow.

The British government has been introducing programs to help workers and self-employed

individuals in response to COVID-19 crises. these programs aimed at preventing loses of jobs

that could see a reduction in income. The schemes then developed by the government in turn

affected household finances. At the end of March the government announced a package scheme

in support of those who had lost income as a result of COVID-19 and the lockdown

(Tanrıvermiş, 2020). The length of the scheme was prolonged and the final payments were made

in August 2020. According to Paul and Hilber, the impact of the corona virus on housing caused

a reduction in the prices of houses prices and rentals. However, the affordability off these houses

is a nightmare to a number of citizens.

Haider Ali Zaidi, S. et al. (2017) ‘Brexit: A review of impact on future of United Kingdom

outside the European Union’, International Journal of Modern Research in Management IJMRM

International Journal of Modern Research in Management, 1(1), pp. 14–33.

Malik, A. et al. (2019) ‘Investigating the Potential Economic Impact of Brexit on Business

Performance in the United Kingdom’, International Journal of Management, Accounting and

Economics, 6(4), p. 22.

Oizides, J. O. H. N. L. and Amvoukas, G. E. V (2005) ‘GOVERNMENT EXPENDITURE AND

ECONOMIC GROWTH : EVIDENCE FROM TRIVARIATE CAUSALITY TESTING’,

VIII(1), pp. 125–152.

Tanrıvermiş, H. (2020) ‘Possible impacts of COVID-19 outbreak on real estate sector and

possible changes to adopt: A situation analysis and general assessment on Turkish perspective’,

Journal of Urban Management, 9(3), pp. 263–269.