Over the past year, the value of the UK’s property market has increased to £5 trillion. However, a new report shows that the wealth of housing is shown to be most concentrated in the South East and London. A decade ago, the UK’s housing stock was valued at £2.9 trillion. This figure rose to £5.4 trillion during 2007. The total of the UK’s housing stock still however lags behind at 6.4% below peak figures. These findings were shown by the yearly Valuing Britain report provided by the real estate advisor Savills.
London’s housing stock value is worth 14.2% more than it was worth in 2007 and has risen by 6.8% over the last year. Northern Ireland has been hit the worst in the entire UK with its housing valued at £72 billion down from last year, 10.2%. This means that homes in London are worth £1.12 trillion and accounts for 22.5% of the entire housing value in the UK. However, this currently stands at 12.2% of housing stock. London’s value has risen by £140 billion over the last five years.
The value of homes across the entire North East of England is similar to the amount that London’s economy has risen by. Savills report states that these facts mean that London and the South East have exceeded the average and increased the divide between the North and the South.
The entire housing value of Scotland, Wales and North Ireland combined is £550 billion, which is the same as the ten following London boroughs combined, Wandsworth, Barnet, Kensington and Chelsea, Westminster, Camden, Ealing, Richmond, Lambeth, Hammersmith and Fulham and Bromley. High value boroughs such as the City of Westminster has a total value on its own of £95 billion which is equivalent to two Edinburghs or three Bristols.
One part of Surrey, the commuter hotspot Elmbridge, is worth more than the whole of Glasgow, and Windsor and Maidenhead is worth more than the whole of Cardiff. Increases in value have been found primarily in the private rented sector due to a heavy demand after the credit crunch. Privately rented homes have increased by 61% over the past decade and there are currently 4.8 million privately rented homes over the UK. The value of this part of the economy is currently £893 billion which itself has risen 153% over the last decade. London accounts for 37% of the private rented sector which is 36% over the value in 2007.
£1.7 trillion of housing belongs to owners with no mortgage debt. This has risen from 76% over the past decade and 1.4% since 2012. Mortgaged properties now have a value of £1.8 trillion which has risen 42% from 2002 but down 0.6% since 2012.
The survey finds that people are experiencing difficulty getting on the housing ladder and there are many social and financial implications. The divide between the North and South, and even London on its own will have implications of its own. The demand is much greater than the supply.Back to News