"While higher mortgage rates and buyer uncertainty may have dampened the current rate of house price growth, this reduction is just a drop in the ocean compared to the meteoric increases seen since the start of the pandemic property market boom"
- Verona Frankish - Yopa
New research from estate agency, Yopa, looked at the total value of the bricks-and-mortar market based on the total number of dwellings and the average value of a home, looking at how both have changed since the market went into overdrive during the pandemic.
National look
The research shows that in December 2019, prior to the pandemic, the average home across England was worth £248,097. With some 24.4m dwellings found across England in 2019, this put the total estimated value of the property market just shy of £6.1tn.
Fast forward to today, and the average house price has climbed by 25%, now sitting at £390,602. There has also been an increase in the number of homes, albeit more marginal at 1.9%, although this still equates to an increase of 459,191.
As a result, Yopa estimates that the total value of the property market currently stands at £7.7tn, an increase of £1.6tn (27%) since the start of the pandemic.
Regional increases
The South East has seen the largest jump in the total value of the region’s property market, increasing by £311bn as a result of the pandemic property market boom.
Despite the capital underperforming compared to the rest when it comes to pandemic house price growth, the London market is worth some £251.3bn more today versus the pre-pandemic market in 2019.
While the North East has seen the smallest increase in total market value, the region’s bricks-and-mortar market is still worth £45bn more today versus 2019.
Local authority look
Cornwall ranks top at the local authority level, with £24.3bn added to the value of the Cornish property market as a result of the pandemic, no doubt driven by those looking to escape city life during lockdown restrictions.
Buckinghamshire (+£23.4bn), Birmingham (+£22.2bn), Leeds (+£21.4bn) and North Yorkshire (+£20.1bn) have also seen some of the largest monetary increases in the value of their respective property markets since the start of the pandemic.
CEO of Yopa, Verona Frankish, commented: “With all the current doom and gloom surrounding the property market it’s quite easy to forget that we’ve just witnessed one of the most sustained periods of house price growth in living memory.
“So while higher mortgage rates and buyer uncertainty may have dampened the current rate of house price growth, this reduction is just a drop in the ocean compared to the meteoric increases seen since the start of the pandemic property market boom.
“To think that the bricks and mortar market across England is estimated to be worth £1.6tn more compared to just a few years ago is quite incredible and it really does demonstrate the strength of the property market when viewed on a long-term basis.”
