Total value of UK homes now stands at £5.75 trillion, new research shows
The total value of homes across the UK now stands at £5.75 trillion, an increase of £543 billion in one year and £966 billion in five years, new research shows.
London and the South East account for a growing share of the total, with a combined value of over £2.5 trillion, with average values per property now at £428,988 and £282,168 respectively.
Five year total value growth has been seen in all regions with the exception of the North West and North East and Northern Ireland, the detailed analysis of the nation’s housing stock from real estate firm Savills also shows.
The firm includes all tenures in its valuation and has found that the total value of owner occupied stock reached £3.9 trillion in 2014 split broadly evenly between that subject to a mortgage and that owned outright.
Owner occupied homes remain the dominant tenure, accounting for almost 15 million households and the number of homes owned without a mortgage rose 437,471 in the past five years, to over 8.3 million, with values rising £325 billion to almost £2 trillion.
By contrast, as a result of the credit crunch and subsequent constraints on mortgage lending, homes owned with a mortgage have fallen by almost 800,000 over the past five years.
For similar reasons, the total value of stock in the private rented sector has passed the £1 trillion mark, having risen in value by 17% in one year, 57% in five years.
The total number of private rented homes has risen by almost 1.2 million since 2009, taking the total to over 5.4 million, compared to 4.7 million in the social rented sector.
The value of housing stock in London stands at £1.485 trillion, an increase of 20% or £247 billion in one year and 61% in the past five years.