PESTLE
Political - The United Kingdom currently has a population of over 66 million, which is the highest number ever. By
the middle of this century, the UK will likely dominate all other European countries in size.
Population Matters., 2022. Overpopulation in the UK. Available at: https://populationmatters.org/overpopulation-
in-the-uk/ [accessed 18th November 2022]
Sociological - The population of the United Kingdom is equal to 0.87% of the population of the entire planet.
https://www.worldometers.info/world-population/uk-population/
Ecological - According to Oxford Economics, inflation will average 5.4% during the following year, reaching a peak
of 10.5% in January 2023.
Oxford Economics and House of Commons., 2022. Rising Cost of living in the UK. Available at:
https://researchbriefings.files.parliament.uk/documents/CBP-9428/CBP-9428.pdf [accessed 18th November 2022]
Technological - Throughout the pandemic 47% of property seekers to purchase or rent completed digital property
tour.
Technological - A study that included 1,000 home buyers also found that 19% of them had only taken a virtual tour
of a property before making an offer.
Technological - The ability to view a home at any time is one of the key advantages of virtual tours, according to
68% of survey participants.
We may anticipate that PropTech developments will continue to be significant in the processes of renting and
buying homes as they develop. https://thenegotiator.co.uk/half-of-all-house-hunters-now-use-virtual-tours-new-
poll-reveals/
The Negotiator., 2022. Half of all house hunters now use virtual tours. Available at:
https://thenegotiator.co.uk/half-of-all-house-hunters-now-use-virtual-tours-new-poll-reveals/ [accessed 18th
November 2022]
Environmental –
It is expecting the 13% of the whole amount of carbon emission decrease to come from reconstructed buildings.
The largest 750 cities represent 61% of global GDP will need 260 million new houses, 540 million m2 new office
spaces and 60 million new job opportunities in the industry.
Annually the real estate sector consumes more than 40% of the world energy. Worldwide greenhouse gas emission
(20%) comes from buildings. it is estimated that it is expecting 56% rise by 2030 in building CO2.
World Economic Forum., 2016. Environmental Sustainability Principles for the Real estate industry.
https://www3.weforum.org/docs/GAC16/CRE_Sustainability.pdf
Legal -
,Increasing the house prices was shown around the UK's four regions as follows 12.9% Wales which is the highest
increase from the beginning of the year to September, 10.7% Northern Ireland, 9.6% England and 7.3% Scotland.
https://www.forbes.com/uk/advisor/personal-finance/2022/11/17/house-prices-updates/
Forbes., 2022. House prices – Latest News. Available at:
https://www.forbes.com/uk/advisor/personal-finance/2022/11/17/house-prices-updates/ [accessed 18th
November 2022]
Political factors include:
Government policies – this means that the regulations can change and drive demand and
supply. For example, governments in many different countries are encouraging people to save
up and invest in property which lowers the demand for rentals.
When Margaret Thatcher oversaw the government, it passed the Housing act
1980 to 5 million allow council house tenants in England and Wales to buy their
house using the Right to buy scheme.
Similarly, the government of Boris Johnson was pondering to provide the
tenants of housing associations with the right to buy which will enable millions
to buy their first house with discount.
Political stability and instability also have an impact on the housing market.
Investors are encouraged to buy more when a country has political stability.
During political instabilities there might be less demand for properties both on
the rental market and the buyers’ market.
Economic Factors:
Demand being a big one, both current and future demand. Current demand is factors like population
growth and changes in demographic, affordability and the level of economic growth. These are
influenced by interest rates, government policies and the level of security in the financial market.
Due to inflation rates of the current economic climate, less people will be opting to move out from
home, therefore, there will be less of an influx in deposits needing to be protected.
, Industry supply, this could be stuff like land availability which is influenced by economic conditions and
government policy.
An opportunity can be taken advantage of if a boost from people wanting to move out occurs. This will
ensure a higher influx of money into the deposit protection sector, therefore bringing more money into
the economy. Ways of increasing demand and ensuring more people need a deposit system would be to
partner up with other companies in the same sector with different mission statements to make the
prospect of having one's own place more attractive.
Legal:
Laws that can be passed to protect the environment allow new technologies to be developed. Different
laws and regulations can drive up the cost of houses both buying and renting. The laws and regulations
are different in different countries which can have different property ownership which may impact the
decision of property buyers.
Faith in the sector could be lost if dispute cases start to take longer in court due to lack of resources.
People may opt for alternative methods to avoid having to go through a TDS.
Unapproved companies in the sector pose a risk to people wanting to use the services. This may mean
faith in renting could be quite off-putting as a longer process involving getting a deposit back isn’t
appealing. Also, as well as being unappealing, the legality involved with even getting the despot back
could prove quite unnerving.
Social factors:
Population growth, big one shaping the housing industry. Education levels will play a big factor in
shaping the consumer behaviour and spending patterns.
Motivation could be one as well since a lot of people are really motivated about buying and they don’t
want to worry about renting.
There are some factors that people are affecting while choosing a property, for example the size of the
property, transport availability, special needs
Technological factors:
Virtuality - allows people to view a property before buying and allows the potential customers to see if it
suits their needs before buying the property. This all links in to Augmented reality.
Smart City? Consumer expectations and emerging technologies.
Political - The United Kingdom currently has a population of over 66 million, which is the highest number ever. By
the middle of this century, the UK will likely dominate all other European countries in size.
Population Matters., 2022. Overpopulation in the UK. Available at: https://populationmatters.org/overpopulation-
in-the-uk/ [accessed 18th November 2022]
Sociological - The population of the United Kingdom is equal to 0.87% of the population of the entire planet.
https://www.worldometers.info/world-population/uk-population/
Ecological - According to Oxford Economics, inflation will average 5.4% during the following year, reaching a peak
of 10.5% in January 2023.
Oxford Economics and House of Commons., 2022. Rising Cost of living in the UK. Available at:
https://researchbriefings.files.parliament.uk/documents/CBP-9428/CBP-9428.pdf [accessed 18th November 2022]
Technological - Throughout the pandemic 47% of property seekers to purchase or rent completed digital property
tour.
Technological - A study that included 1,000 home buyers also found that 19% of them had only taken a virtual tour
of a property before making an offer.
Technological - The ability to view a home at any time is one of the key advantages of virtual tours, according to
68% of survey participants.
We may anticipate that PropTech developments will continue to be significant in the processes of renting and
buying homes as they develop. https://thenegotiator.co.uk/half-of-all-house-hunters-now-use-virtual-tours-new-
poll-reveals/
The Negotiator., 2022. Half of all house hunters now use virtual tours. Available at:
https://thenegotiator.co.uk/half-of-all-house-hunters-now-use-virtual-tours-new-poll-reveals/ [accessed 18th
November 2022]
Environmental –
It is expecting the 13% of the whole amount of carbon emission decrease to come from reconstructed buildings.
The largest 750 cities represent 61% of global GDP will need 260 million new houses, 540 million m2 new office
spaces and 60 million new job opportunities in the industry.
Annually the real estate sector consumes more than 40% of the world energy. Worldwide greenhouse gas emission
(20%) comes from buildings. it is estimated that it is expecting 56% rise by 2030 in building CO2.
World Economic Forum., 2016. Environmental Sustainability Principles for the Real estate industry.
https://www3.weforum.org/docs/GAC16/CRE_Sustainability.pdf
Legal -
,Increasing the house prices was shown around the UK's four regions as follows 12.9% Wales which is the highest
increase from the beginning of the year to September, 10.7% Northern Ireland, 9.6% England and 7.3% Scotland.
https://www.forbes.com/uk/advisor/personal-finance/2022/11/17/house-prices-updates/
Forbes., 2022. House prices – Latest News. Available at:
https://www.forbes.com/uk/advisor/personal-finance/2022/11/17/house-prices-updates/ [accessed 18th
November 2022]
Political factors include:
Government policies – this means that the regulations can change and drive demand and
supply. For example, governments in many different countries are encouraging people to save
up and invest in property which lowers the demand for rentals.
When Margaret Thatcher oversaw the government, it passed the Housing act
1980 to 5 million allow council house tenants in England and Wales to buy their
house using the Right to buy scheme.
Similarly, the government of Boris Johnson was pondering to provide the
tenants of housing associations with the right to buy which will enable millions
to buy their first house with discount.
Political stability and instability also have an impact on the housing market.
Investors are encouraged to buy more when a country has political stability.
During political instabilities there might be less demand for properties both on
the rental market and the buyers’ market.
Economic Factors:
Demand being a big one, both current and future demand. Current demand is factors like population
growth and changes in demographic, affordability and the level of economic growth. These are
influenced by interest rates, government policies and the level of security in the financial market.
Due to inflation rates of the current economic climate, less people will be opting to move out from
home, therefore, there will be less of an influx in deposits needing to be protected.
, Industry supply, this could be stuff like land availability which is influenced by economic conditions and
government policy.
An opportunity can be taken advantage of if a boost from people wanting to move out occurs. This will
ensure a higher influx of money into the deposit protection sector, therefore bringing more money into
the economy. Ways of increasing demand and ensuring more people need a deposit system would be to
partner up with other companies in the same sector with different mission statements to make the
prospect of having one's own place more attractive.
Legal:
Laws that can be passed to protect the environment allow new technologies to be developed. Different
laws and regulations can drive up the cost of houses both buying and renting. The laws and regulations
are different in different countries which can have different property ownership which may impact the
decision of property buyers.
Faith in the sector could be lost if dispute cases start to take longer in court due to lack of resources.
People may opt for alternative methods to avoid having to go through a TDS.
Unapproved companies in the sector pose a risk to people wanting to use the services. This may mean
faith in renting could be quite off-putting as a longer process involving getting a deposit back isn’t
appealing. Also, as well as being unappealing, the legality involved with even getting the despot back
could prove quite unnerving.
Social factors:
Population growth, big one shaping the housing industry. Education levels will play a big factor in
shaping the consumer behaviour and spending patterns.
Motivation could be one as well since a lot of people are really motivated about buying and they don’t
want to worry about renting.
There are some factors that people are affecting while choosing a property, for example the size of the
property, transport availability, special needs
Technological factors:
Virtuality - allows people to view a property before buying and allows the potential customers to see if it
suits their needs before buying the property. This all links in to Augmented reality.
Smart City? Consumer expectations and emerging technologies.
