Value of private housing soars to £5.6 trillion

The average value per household in the UK now stands at £241,682, up from £173,837 in 2006 – representing an increase of £67,845 (39%).

This increase has been driven by a 51% rise in the average house price and the stock of privately owned homes expanding by 1.8 million, from 21.3 million to 23.1 million.

More than half (£1.1 trillion) of this rise is accounted for by London and the South East. Since 2006 the average house price in the capital has almost doubled (98%) whilst the stock of private dwellings has grown by a quarter of a million (10%).

The north-south gap has widened further since 2006.The value of housing in southern England has increased two and half times faster than in the north – 70% compared to 27% - over the past decade.  As a result, the South's share of total UK housing assets rose from 55% in 2006 to 62% in 2016.

UK housing equity remains strong with total mortgage debt a quarter of total housing value. Total mortgage debt has risen by 25% since 2006 from £1.1 trillion to £1.3 trillion. However the value of the private housing stock has increased by over seven times as much; £1.9 trillion compared with the £264 billion rise in mortgage debt. As a result, housing equity has increased by £1.6 trillion (60%) over the decade from £2.6 trillion in 2006 to £4.3 trillion.

Martin Ellis, housing economist at Halifax, said: “The combined value of all privately owned houses in the UK is estimated at £5.6 trillion in 2016 – the highest on record. A combination of higher house prices and an increase in the number of privately owned homes has seen the value of housing stock grow by £1.9 trillion in the past decade.

“Overall housing equity held by UK households is in a healthy state, with total housing assets worth over £4.2 trillion more than the value of mortgage debt. Housing equity has grown by £1.6 trillion since 2006. For almost one in three homeowners – who own their home with no outstanding mortgage debt – their financial position is even stronger.”