The total value of the UK’s housing stock reached a record £7.29 trillion in 2018, analysis has found.
Despite a slowdown in the housing market amid
The gains came from outside
And the capital accounts for almost a quarter of UK housing value, compared with a fifth a decade ago.
Some £137.7 billion of the increase in the value of housing stock last year was due to house prices going up – equating to a £4,800 price increase per home.
The total value of the UK’s housing stock reached a record £7.29 trillion in 2018, analysis has found (file photo)
While 72 per cent of the increase in the value of housing stock last year came from house price increases, the remaining 28 per cent – or £52.6 billion was due to new homes being built.
Savills said this is the the highest proportion contributed by new housing development since 2011 and reflects the Government focus on building more new homes.
Within the £7.29 trillion total, the collective value of the private rented sector topped £1.5 trillion for the first time.
Across the UK, in percentage terms, Wales was the region showing the biggest gains in the value of housing stock in 2018, with a 6.3 per cent increase adding £13.4 billion.
The gains came from outside London, as the total value of its residential housing stock recorded a £26.2 billion fall – the first decrease since 2009 (file photo)
The East Midlands (6.2 per cent) and West Midlands (6.1 per cent) followed closely behind.
In cash terms, the value of stock in the South East saw the biggest increase across the UK last year, with £29.9 billion added on the back of growth of 2.2 per cent
‘Our analysis demonstrates the scale of the housing market and underlines the importance of housing to the economies of London and the UK as a whole, both as an asset class and store of private wealth,’ said Lawrence Bowles, residential research analyst at Savills.
He continued: ‘As affordability becomes more stretched, younger households are having to put off buying their first home until later in life.’