Property

UK housing stock value hits £6 trillion

The latest Halifax research shows that, over the last decade, the total value of privately owned UK housing stock has risen by £1.94 trillion - passing the £6 trillion mark for the first time.

Warren Lewis
|
29th November 2017
house prices 6

The latest Halifax research shows that, over the last decade, the total value of privately owned UK housing stock has risen by £1.94 trillion - passing the £6 trillion mark for the first time.

According to the report, in the past year alone, the value has grown by £376 billion, reflecting average house price growth of 5% in the year to August.

This increase has been driven by a 45% rise in the average house price and the stock of privately owned homes expanding by 1.9 million to 23.4 million.

More than half (55%) of the rise over the last decade is accounted for by London and the South East. Since 2007, the average house price in the capital has increased by £349,629 (71%) to £579,761, while the stock of private dwellings has grown by a quarter of a million (10%).

Northern Ireland is the only region to have seen housing wealth fall (by 24%) during this period, mostly due to house prices being 34% lower than in 2007.

Overall the value of housing in southern England has increased over two and half times faster than the north – 65% compared to 25% – over the past decade.  

On average, 76% of privately owned properties across the UK are owner occupied. However, in London, less than two thirds of private housing residents live in homes that they own (62%).

Almost a quarter (24.4%) of total housing wealth is held by households in the age group from 55 to 64 and 40% is held by over 65s.

Just 0.1% of net housing wealth is held by those aged 16 to 24.

Russell Galley, Managing Director, Halifax, said: "The value of housing stock has grown by close £2 trillion in the past decade and with the equity rich regions of London and the South East largely responsible, it highlights a considerable regional imbalance in the distribution of housing wealth.

Within the capital there is also a mix of fortunes. While more than a fifth of total property wealth is in London, lower levels of owner occupation reflect a major barrier to the property ladder with a far greater number of people renting where house prices are at their highest."

Related articles
More from Property
Latest from Financial Reporter
Latest from Commercial Reporter