The housing market has a significant link to the economy, accounting for a large amount of the value of GDP, so it impacts what happens in the UK economy. The UK housing market also employs many people in a wide range of industries such as:
construction
sales
furniture
fittings
The UK property market is strongly linked to consumer spending. The price of houses and how well houses sell determines what people have left to spend and informs us what the demand is for services and goods in the UK.
For example, if house prices rise, people with their own homes become wealthier and can spend more as well as become more likely to borrow. They might borrow against the value of their home to purchase other goods and services. When house prices fall, homeowners will spend less and be less likely to be able to borrow.