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UK housing stock tops £5.5 trillion

Christina Hoghton
Written By:
Christina Hoghton

The total value of privately-owned housing stock in the UK has passed £5.5trn for the first time ever, according to Halifax.

And it’s price rises in London and the South East that have driven the surge.

In the past 10 years, the total value of housing stock has been boosted by over 50%, or £1.9trn, to reach an estimated £5.6trn. By comparison the Retail Prices Index increased by 33% over the same period.

During this time, the average house price has also increased by 50%, which is partly responsible for the increase of value of stock, alongside a 1.8 million injection of private homes to the market expanding the market to a size of 23.1 million houses.

Rocketing prices in London and the South East have accounted for over half of the rise in the total value of the UK’s housing stock. Residents in the capital have seen their home almost double in value since 2006.

The average value of a UK household now stands at £241,682, up from £173,837 in 2006 up almost 40% or £68,000.

Halifax housing economist Martin Ellis said the picture of housing equity held by UK households was in a ‘healthy’ position, as total housing assets exceeded mortgage debt by £4.2trn.

Homes in the North have grown two and a half times slower than housing in southern England, said the lender, by 27% compared to 70% over the last 10 years. This has led to the South’s share of total UK housing assets rising from 55% in 2006 to 62% in 2016.