UK homes worth £4 trillion

| January 11, 2008 | 0 Comments

New research from Halifax estimates that homes in the UK are worth a total of £4 trillion.

The figure represents a £320 billion increase on this time last year (9%) and a tripling in value over the past ten years.

Around £1177.2 billion is secured on UK properties, which means that housing equity (the value of housing assets less outstanding mortgage balances) has risen from £870 billion in 1997, to £2.8 trillion in 2007.

Martin Ellis, chief economist at Halifax, point out that: “UK homeowners have collectively accumulated an extra £2 trillion of equity in their homes over the past decade as property prices have risen.”

As a result, mortgage debt now accounts for only 30% of the value of the UK’s housing assets.

According to the survey, the north/south property gap has been closing in recent years.

The north of the country now accounts for 45% of the UK’s housing assets, as compared with 39% five years ago.

However, thirty-six per cent of the UK’s housing wealth remains in the south-east and London.

Since 1997, the biggest rise in property values has been recorded in: Northern Ireland (404%), Wales (223%) and the south-west (222%).

By region, property price inflation since 1997 is as follows: the North 218%; Yorkshire & Humberside 218%; North West 199%; East Midlands 201%; West Midlands 193%; East Anglia 221%; South West 222%; South East 192%; Greater London 212%; Wales 223%; Scotland 184%; Northern Ireland 404%; UK average 208%.

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