The value of UK housing goes beyond £6trillion!
It’s been an interesting year for the UK property market, and as 2018 approaches, the total market value of property in the country has surpassed £6trillion for the first time.
In the past decade the country has seen stock rise by £2trillion, with the vast majority of wealth coming from the South East with the value of homes in London now eclipsing every house in Scotland, Wales and the North of England combined.
In the capital, house values have jumped from £718billion to £1,338billion since 2007, while Northern Ireland has actually seen its value of property make a loss.
It’s causing problems for both areas, with Russell Galley, managing director of Halifax, who ran the study, stating, “Within the capital there is also a mix of fortunes. While more than a fifth of total property wealth is in London, lower levels of owner-occupation reflect a major barrier to the property ladder with a far greater number of people renting where house prices are at their highest.”
What this does mean is that housing is becoming less affordable for those living in Britain. With falling sales over the last few years, those wanting to sell are having to potentially figure out different means of doing so.
Property buying companies are becoming increasingly valuable in this case, despite offering under market value.
The likes of Property Rescue are helping property owners get their sales and moves over the line, because first time buyers simply can’t.
Just 3.3% of the £6trillion stock is owned by under 35-year-olds, with the vast majority owned by the over 55s.
The recent budget should help start to rebalance this, with stamp duty now scrapped on homes under £300,000. What that will likely do however is increase the value on a home, adding to that already staggering £6trillion.
Currently the average cost of a home is £256,912, up over £69,000 since 2007, and that figure is expected to rise by 0.3% in 2018.