Value of UK homes soar by £1.6tn in five years
The value of British homes has gone up by £1.6tn ($2.2tn) over the past five years, which is about the same as the market cap of Apple (AAPL), new data revealed.
Almost 12 million homes increased in value by the national average of £49,000 or more in this time.
Over a third — £550bn — of the increase has been in the last 12 months alone, as per a Zoopla report, driven by soaring buyer demand and a pandemic-led "search for space".
Sustained price growth in the housing market since 2016 has been underpinned by ultra-low mortgage rates. Over the last 18 months, increased demand and limited supply has put further upward pressure on prices while the pandemic has led to many reevaluating what they want from a home, Zoopla said.
The report also said the open market value of Britain’s homes now totals £9.2tn — four times the UK’s GDP, and more than four times the value of all companies listed in the FTSE 100 (^FTSE).
The majority of this, about £8bn, is held within 23.5 million privately-owned homes, whilst a further £1tn is held within five million social homes.
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Some 88% of homes in Monmouthshire, Wales have risen by more than the national average of almost £50,000, while in Hastings and Trafford this figure stands at 83% and 82% respectively
Total home values in the South East have risen more than anywhere else in the past five years — including London. The value of homes in the South East has increased by £294bn compared to £214bn in the capital.
But whilst London only accounts for 13% of British housing stock, it is responsible for a quarter of its total value.
The value of homes in the City of Westminster and Kensington and Chelsea area (£306bn), which together cover an area of 13 square miles, is higher than all the homes in the North West (£197bn) and roughly the same as Wales (£308bn).
Last month, Rightmove’s house price index revealed that the national average price of properties coming to market in the UK hit an all-time high, rising to £338,462 amid fierce competition for the record low number of available properties for sale.
Watch: How much money do I need to buy a house?
