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UK’s private housing worth more than the fortunes of ALL the world’s billionaires

Homeowners are sitting on a record property fortune of £5.6tn after house prices jumped by more than 50% during the past 10 years, according to Halifax.

That’s greater than the annual GDP of the UK, France and Italy COMBINED. Or to put it another way, the UK’s housing market is worth more than the fortunes of the world’s 1,810 billionaires added together.

The total value of the UK’s privately-owned homes has jumped by £1.9tn since 2006 alone, according to mortgage lender Halifax.

On an individual level, the value of the average property has climbed by £67,845 in the past 10 years, to stand at £241,682.

And in the past year alone, the value of private housing stock has grown by £337bn.

Why is this happening?

The impressive jump in housing wealth has been driven by a combination of rising house prices and increased levels of homeownership.

Property values have soared by 51% since 2006, significantly outpacing the retail price index, which has risen by just 33% during the same period.

At the same time, the number of privately-owned homes has risen by 1.8m to stand at 23.1m.

Who does it affect?

London and the south east have seen the biggest increases in housing wealth, with strong price gains matched by rising numbers of households.

In the capital, the value of privately-owned housing has more than doubled from £655bn to £1.3tn since 2006, while in the south east it has risen by 61% to stand at £402bn.

The east and Scotland have also seen strong gains at 60% and 51% respectively.

But the north-south gap has widened during the past decade, with the value of private homes in southern regions rising by 70%, compared with a gain of just 27% in northern ones.

As a result, the south’s share of total UK housing wealth has increased to 62%, up from 55% in 2006.

Sounds interesting. What’s the background?

Even once outstanding mortgage debt is taken into account, the amount of equity in private housing still stands at £4.2tn.

Housing equity has increased by £1.6tn since 2006, despite the fact that outstanding mortgage debt has also increased during the same period.

But while money owed through mortgages has risen by £264bn, the value of privately-owned housing has soared by seven times as much, increasing by £1.9tn.

Nearly one in three homeowners also now owns their property outright with no mortgage debt at all.

Executive Durham Homes from Elite Estates and Lettings

Britain’s housing stock worth £7.76 trillion

Britain’s housing totalling 28.6 million homes grew in value by nearly £1.4 billion per day during 2015, says Zoopla research. Brentford and West Drayton are areas with largest increases in 2015 (24% and 17% respectively). Wales is the region with the lowest price gains over the past 12 months, at 2.2%. Edinburgh, Bristol and Glasgow amongst top online property searches in 2015.

 

Zoopla says that the country’s 28.6 million homes are now worth a combined £7.76 trillion (£7,764,650,690,201) — with the total residential stock value rising £519 billion (7.2%) over the past year.

 

The average British property is now worth £290,827 and has risen in value by more than £20,000 (7.4%) on average in 2015 – marking a bigger increase year-on-year than 2014 (6.9%).

 

Homeowners in London have seen the highest housing price growth in 2015 of any region, with an 11.8% annual uplift. The East of England follows closely with an 11.6% rise – up from 9.6% during 2014. However, property owners in Wales and Scotland saw the lowest growth in house prices in the last 12 months, with values rising just 2.2% and 2.7% respectively.

 

Bodacious Brentford
Brentford in Middlesex, Greater London finished the year with the greatest increase in housing prices, with values increasing by nearly 24% in 2015. Nearby West Drayton, along with Thame in Oxfordshire also experienced strong growth over the past 12 months, with both localities adding 17% on average to their house prices to round out the top three towns.

 

London, Edinburgh, and Bristol were the top three most searched-for locations by British house-hunters on Zoopla in 2015. Northern areas also performed well, with Glasgow rising in the rankings – moving from sixth place in 2014 to fourth place this year – while Leeds broke into the top 10, coming in eighth.

 

Zoopla also revealed what crucial criteria house-hunters using the property portal have been searching for in 2015. Amongst the most popular keyword searches over the past year were ‘bungalow’, ‘cottage’ and ‘village’, with aspirational property perusers also searching for homes offering a ‘pool’ and a ‘sea view.’

 

Lawrence Hall (left) of Zoopla, said, “Whilst the property market typically slows at this time of the year, prices have performed well in 2015, with some standout towns such as Brentford faring particularly well. Regions like East Anglia continue to boom as professionals and families seek out properties beyond the London commuter belt. Even regions like Wales, where growth has typically been very incremental, have totalled respectable annual growth rates. Of course, to every silver lining there must be a cloud and the price rises we’re seeing do make it harder for those looking to take their first step onto the ladder. But with Government Help to Buy schemes still in place and the promise of new homes to ease demand both buyers and sellers should have at least some reason to be upbeat as we go into 2016

Executive Durham Homes from Elite Estates