For the first time ever, UK private housing stock has surpassed the £6 trillion value mark, according to the latest research from the Halifax.
The Halifax report has shown that in 2017 the value of privately-owned homes has grown by £376 billion to reach £6.015 trillion – meaning that the average residential property value is now £256,912, up 37 per cent from 2007 (£187,310).
“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.”
The study by the bank also showed that around 40 per cent of UK property wealth belongs to households aged over 65. Amongst this age group, around 61 per cent of homeowners were completely mortgage-free.
By comparison, around 47 per cent of people aged 25 to 44 have a mortgage and account for 15.4 per cent of total housing wealth.
Those aged 24 and below now account for just 0.1 per cent of net housing wealth in the UK – showing a vast disparity between older generations and younger people trying to get a foot on to the property ladder.