UK homes worth A?4 trillion


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

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

Around A?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 A?870 billion in 1997, to A?2.8 trillion in 2007.

Martin Ellis, chief economist at Halifax, point out that: “UK homeowners have collectively accumulated an extra A?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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