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 Brexit concerns, the total value of UK housing stock increased by £190.3 billion, real estate adviser Savills found.
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, Savills said.
London’s housing stock is still worth £1.77 trillion – more than four times the combined value of homes in Birmingham, Manchester, Edinburgh, Glasgow, Cardiff, Bristol, Liverpool, and Sheffield.
London still accounts for nearly a quarter (24.3%) of UK housing value, compared with a fifth a decade ago, according to Savills.
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.
While 72% of the increase in the value of housing stock last year came from house price increases, the remaining 28% – 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% increase adding £13.4 billion.
The East Midlands (6.2%) and West Midlands (6.1%) 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%.
“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.”
Here is the total value of homes 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, minus 1.5%, minus £26.2 billion
– South East, £1.39 trillion, 2.2%, £29.9 billion
– East of England, £810.5 billion, 3.0%, £23.5 billion
– South West, £670.4 billion, 4.4%, £28.0 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, £382.0 billion, 4.6%, £16.8 billion
– Wales, £226.1 billion, 6.3%, £13.4 billion
– North East, £152.7 billion, 2.7%, £4.0 billion
– Northern Ireland, £100.7 billion, 6.0%, £5.7 billion