Taylor Scott International News
The value of UK's private housing stock in August 2015 reached an estimated at £5.1 trillion, a rise of 53% over the last decade, with London doubling since 2005. The increase of £1.8 trillion since 2005 is equivalent to £76,316 per household in the owner occupied and private rented sectors and means that the value of the UK private residential housing stock has grown at a faster rate than consumer prices, with the retail price index up by 35% in the past decade. In the past year, the value of private housing stock grew by £262 billion, mainly reflecting average house price growth of 4% in the year to August, according to the research from the Halifax. The research also shows that the value of mortgage debt has also grown, up by 35% since 2005 from £942 billion to £1.28 trillion. Nonetheless, the value of the private housing stock has grown by over five times as much as outstanding mortgage debt at £1.8 trillion compared with £334 billion. As a result, housing equity has increased by £1.4 trillion or 60% over the decade from £2.4 trillion in 2005 to £3.8 trillion. Regionally, there is a wide variation in the level of housing equity, with a higher balance in the south compared to northern areas. The highest is in London where housing equity is estimated at £798 billion, which is equivalent to £305,749 per household. The next largest is South East at £722 billion or £223,197 per household, and the East at £461 billion or £212,263 per household. Outside southern England, the highest equity levels are in the North West at £283 billion or £109,043 per household, the West Midlands at £251 billion or £128,703 per household and Scotland at £241 billion or £124,679 per household. ‘The combined value of all privately owned houses in the UK is estimated at close to £5.1 trillion in 2015. The increase in total housing value over the past decade is equivalent to over £76,000 per privately owned property,’ said Martin Ellis, housing economist at the Halifax. ‘Aggregate net housing equity held by UK households is in a healthy state with total housing assets worth nearly £4 trillion more than the total value of mortgage debt. Despite the rapid rise in mortgage debt over the past 10 years, net housing equity has grown by £1.4 trillion since 2005,’ he added. The research shows that there has be a strong rise in the value of the private housing stock across all regions, with values more than doubling in London at 105% from £552 billion to £1.1 trillion over the decade. The next largest increases were in Scotland at 72% or £136 billion, the South East at 55%, the East at 54% and the South West at 36%. The value of housing in the north increased by 36% compared to 66% in the south during the last ten years. As a result, the South's share of total UK housing assets rose… Taylor Scott International
Taylor Scott International, Taylor Scott
