According to a report published by real estate Savillls the value of the UK’s housing stock has hit a record high of £7.56 trillion, this is more than four times the value of all companies in the FTSE100
Despite the onset of Covid-19, the value of the UK housing stock rose 5.3% from £7.39 trillion in 2019 to £7.56 trillion in 2020 adding a total of £380 billion (+5.3%) to the combined value of all homes in the UK, the fastest increase in housing value since 2015. In the past five years, the UK’s housing stock appreciated by £1.33 trillion (+21.5%), an average of £266 billion a year, some £114 billion below the 2020 total.
According to the report, the North of England saw its largest annual increase in housing value since 2005. Values in the North (*the North West, North East, and Yorkshire & Humberside) rose by £59 billion, from £1.07 trillion in 2019 to £1.13 trillion in 2020 (+5.5%). That growth means the North, Midlands, Scotland, Wales and Northern Ireland together accounted for a record £2.81 trillion in housing value in 2020. Despite that growth, these regions, which together account for 56% of the UK’s homes, still only account for 37% of its housing value.
London and South East saw the value of its housing stock increase by £167bn (5.5%) to £3.19 trillion, accounting for 42% of the total value of housing stock in the UK but only 26% of all homes.
Government support for homeownership and funding from the Bank of Mum and Dad have combined to support mortgage owner occupation, while longer mortgage terms mean households remain mortgaged for longer. For the first time ever, the value of mortgaged owner occupied homes passed the £2.5 trillion mark, rising by £170 billion to £2.62 trillion in 2020.