Research has revealed that the total value of the property market across England is estimated to have climbed by £1.6tn as a result of the pandemic property market boom – representing a 25% increase in the average value of a home.
The Yopa agency analysed the total value of the bricks and mortar market based on the total number of dwellings and the average value of a home in England*, looking at how both have changed since the market went into overdrive during the pandemic.
The research shows that in December 2019, prior to the pandemic, the average home across England was worth £248,097. With some 24.4 million 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, the researchers estimate 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.
The South East has seen the largest jump in the total value of the 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 the 2019.
Cornwall ranks top at local authority level, with £24.3bn added to the value of the property market as a result of the pandemic boom, 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.
Verona Frankish, CEO of Yopa, 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.
“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.”
* Yopa says the data used is based on UK House Price Index rather than sold price data. The average house price for each area was multiplied by dwelling numbers to get the total market value.