After gains of £385 billion in 2015, new research has shown that the total value of Britain’s housing stock has passed the £6 trillion mark for the first time.
Furthermore, it reports that the total value of the private rented sector is now £1.29 trillion which has increased by 55% in five years. Mortgaged owner occupiers were overtaken for the first time by net wealth, which passed the £1 trillion mark in 2015.
The report further emphasizes that residential property has become an even more important store of wealth. This is shown with total equity standing at around £4.8 trillion net of borrowing which is equivalent to over 2.7 times the GDP of the UK.
Over the past decade, the total value of the UK’s homes has risen by over £1.6 trillion; however the largest growth can be seen over the past three years. This therefore means that the UK’s 28.2 million homes of all tenure now have an average value of £218.474, which has increased 18.9% in just five years.
Steve Povall, Managing Director of Residential Estates said “depending on location and ownership, the value and the change in value can be very different. These figures show just how difficult it can be for people to not only move up the housing ladder, but to get themselves on it in the first place.”