UK housing stock now worth a record £7.56trn

The total value of the UK’s housing stock has hit a record high of £7.56trn despite the pandemic and prevailing economic uncertainty, according to Savills.

The total UK housing value, which rose £380bn compared to 2019, now stands at four times the value of all companies in the FTSE 100.

The value of housing in the North of England saw its strongest growth since 2005 with a £59bn gain, while London and SE account for around £1.8trn and £1.4trn respectively, an increase of 23% and 18% of the total.

The value of mortgaged owner occupied homes passed £2.5 trillion for the first time, driven by support from the Bank of Mum and Dad, longer mortgage terms, and the support of Help to Buy, Savills reported.

The mortgage guarantee scheme announced in this month’s Budget will boost this figure further.

Lawrence Bowles, a director in Savills residential research team, said: “People reassessed their housing needs and preferences as a result of the pandemic and that drove a surge in transaction activity in the second half of last year.

“This triggered rapid price growth as many buyers who felt secure in their finances looked for larger homes to accommodate the multiple demands of home working and home schooling, as well as extra space for living and leisure.  It also meant that the total value of properties held with a mortgage rose by 6.9% as people stretched their borrowing to accommodate lifestyle demands.”

Total value

% growth

In 2020

Value gain

In 2020

London

£1,765bn

6.1%

£101bn

South East

£1,420bn

4.9%

£66bn

East of England

£855bn

4.7%

£39bn

South West

£706bn

6.2%

£41bn

North West

£561bn

6.2%

£33bn

West Midlands

£508bn

4.9%

£24bn

East Midlands

£418bn

5.5%

£22bn

Yorkshire and the Humber

£411bn

5.0%

£20bn

Scotland

£390bn

4.5%

£17bn

Wales

£245bn

3.8%

£9bn

North East

£158bn

4.4%

£7bn

Northern Ireland

£117bn

3.2%

£4bn

United Kingdom

£7,555bn

5.3%

£380bn

Source Savills Research using ONS, Land Registry, MHCLG, UK Finance

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