Value of UK private housing stock 'tops £6 trillion' for first time

The value of Britain's private housing stock has topped £6 trillion for the first time, according to fresh research from Halifax.

In 2017, the value of privately-owned homes has grown by £376 billion to reach £6.015 trillion, the bank said, with the average value per household standing at £256,912, up from £187,310 in 2007.

The report also found huge regional variation in levels of housing equity, with the highest in London, where equity - the difference between the value of the house and the outstanding debt - is an estimated £968 billion, around £360,193 per household.

"The value of housing stock has grown by close to £2 trillion in the past decade and with the equity-rich regions of London and the South East largely responsible, it highlights a considerable regional imbalance in the distribution of housing wealth,” Russell Galley, managing director at Halifax, said.

"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."

Halifax also found huge variations according to age:

  • Some 40% of property wealth belongs to households aged over 65

  • Around 61% of homeowners over 65 are mortgage-free

  • Some 24.4% of total housing wealth is held by households in the 55 to 64 age group

  • Around 47% of people aged 25 to 44 have a mortgage and account for 15.4% of total housing wealth

  • Just 0.1% net housing wealth is held by people aged 16 to 24