New research from Halifax shows that the value of the UK’s private housing stock rose by £1.8 trillion (84%) in the decade to 2011.
The value of the housing stock at the end of 2011 is estimated at £3.9 trillion, up from £2.1 trillion in 2001.
The increase of £1.8 trillion over the decade is equivalent to £68,500 per household – in the owner-occupied and private rented sectors – in the UK. The value of the UK private residential housing stock has grown at more than twice the rate of any increase in overall consumer prices, with the retail price index up by 38% over the past ten years.
However Halifax says the picture changes when looking at the value of housing stock since 2007. Over the past five years the value of the UK’s housing stock has declined by 5%, or £187 billion.
This reflects the reduction in house prices since autumn 2007: a decline Halifax says is more than compensated for by the significant increases in the half decade prior to 2007.
All 12 regions of the UK have seen a significant increase in the value of their private housing stock during the last ten years.
“The decline in house prices seen since autumn 2007 notwithstanding, the value of UK’s housing stock has soared in the decade to 2011, rising by 84% to just under £4 trillion at the end of 2011.” said Martin Ellis, housing economist at Halifax.
“Whilst outstanding mortgage debt has more than doubled over the last ten years, the value of the housing stock has risen by more in monetary terms.
“As a result, the total value of housing equity has shown a healthy increase. For most homeowners housing is still very much the main store of private wealth.”