The total value of the UK’s housing stock reached a record £7.29 trillion in 2018, according to fresh research from Savills.
The total value of the UK’s housing stock increased by £190.3 billion last year, led by gains in the regions.
London accounts for 24.3% of UK housing value, compared with a fifth a decade ago, the analysis shows, and this is despite a 1.5% drop in the value of London’s residential stock in 2018 – the first decline since 2009.
London’s housing stock is worth £1.77 trillion – more than four times the combined value of homes in Birmingham, Manchester, Edinburgh, Glasgow, Cardiff, Bristol, Liverpool, and Sheffield.
“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.
Across the UK as a whole, capital growth added £138 billion in total, some 72% of total gains, equivalent to growth of £4,800 per home, with new housing development making its highest ever contribution to total gains at 28%, which Savills says reflects the government focus on building more new homes.
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% increase adding £13.4 billion.
The East Midlands and West Midlands followed closely behind at 6.2% and 6.1% respectively.
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%.
Bowles commented: “Once again, we see that wealth concentrated in ever fewer, older hands, to the extent that the UK’s over 50s hold a quarter of all UK homeowner equity, while the over 65s in London and the South of England alone account for over three-quarters of the total.
“At the same time, as affordability becomes more stretched, younger households are having to put off buying their first home until later in life. It’s great that we’re seeing more housing delivery, but development will have to make up a much higher proportion of new housing value if we are to come anywhere need building the homes this country needs.”
Here’s the total value of residential properties across the UK’s nations and regions in 2018, according to Savills, with the change in percentage and cash terms compared with 2017:
+ London, £1.77 trillion, (-1.5%, +£26.2 billion
+ South East, £1.39 trillion, (+2.2%, +£29.9 billion)
+ East of England, £810.5 billion (+3%, +£23.5 billion)
+ South West, £670.4 billion (+4.4%, +£28 billion)
+ North West, £529.3 billion (+5.1%, +£25.5 billion)
+ West Midlands, £468.2 billion (+6.1%, +£26.9 billion)
+ Scotland, £400.7 billion (+5.3%, +£20.3 billion
+ East Midlands, £389.3 billion (+6.2%, +£22.6 billion)
+ Yorkshire and the Humber, £382 billion (+4.6%, +£16.8 billion)
+ Wales, £226.1 billion (+6.3%, +£13.4 billion
+ North East, £152.7 billion (+2.7%, +£4 billion)
+ Northern Ireland, £100.7 billion (+6%, +£5.7 billion)