Properties in the UK have risen in value collectively by £5.1 trillion, outstripping the rate of inflation.
- UK homeowners now collectively sit on a property value wealth of £5.1 trillion
- The wealth of privately owned property has risen by 53%, equivalent to over £76,000 per household
- The UK property market is now worth more than the combined value of Japan and the UK’s GDP
House prices within the UK have swelled by £1.8 trillion in the past decade, equivalent to a 53% increase.
This means property values within the UK have far outpaced the 35% rise in inflation over the last ten years, with a typical household increasing in worth by £76,316 since 2005, according to mortgage lender Halifax.
With homeowners collectively sitting on £5.1 trillion worth of property, private housing stock within the UK is now worth more than the annual GDP of Japan and the UK combined.
Martin Ellis, Housing Economist at Halifax, said: “Aggregate net housing equity held by UK households is in a healthy state with total housing assets worth nearly £4 trillion more than the total value of mortgage debt. Despite the rapid rise in mortgage debt over the past 10 years, net housing equity has grown by £1.4 trillion since 2005.”
The high figure has been driven by rising property prices in recent years, with homeowners and investors seeing their housing wealth increase. Despite property values falling between 2007 and 2009, their recovery has been consistent and have soared by a third since their previous low, with all areas of the country experiencing a housing wealth increase.