Investigating the Influencing Factors of Average House Prices in the United Kingdom

This study investigates the relationship between the average house price in the United Kingdom (GBP) and several factors that potentially influence housing prices. Utilizing statistical analysis with SPSS, the study examines the impact of population, total dwellings, GDP per capita (GBP), inflation rate, unemployment rate, interest rate, and GDP in million (GBP) on the average house price in the UK. The conceptual model categorizes these factors into three main groups: economic factors, demographic factors, and housing-related factors. The study hypothesizes that economic factors such as inflation, GDP per capita, and GDP in million (GBP) will positively influence average house prices, while unemployment rates will have a negative effect. Additionally, it is expected that a larger population and fewer dwellings in total will result in higher house prices due to increased demand relative to supply. The interest rate, representing a housing-related factor, is anticipated to impact affordability and availability of mortgage financing, with higher interest rates potentially leading to lower average house prices. The study employs linear regression analysis using SPSS to examine these relationships. By uncovering the factors influencing the average house price in the UK, this research aims to provide insights into the housing market and inform policymakers, investors, and individuals interested in the UK housing sector.