The value of housing stock has outpaced inflation and left UK homeowners with an average value of £241,682, Halifax has claimed.
Research from the lender, based on ONS figures, found the total value of privately owned housing stock in the UK has grown to over £5.5trn since 2006. In the past decade, total value has grown by £1.9trn, or 51%, to an estimated £5.6trn, beating the 33% increase in the retail price index (RPI).
The average value per household in the UK now stands at £241,682, up from £173,837 in 2006 – representing an increase of £67,845 or 39%, Halifax says. In the past year alone, the value of private housing stock grew by £337bn, mainly reflecting average house price growth of 12% in the year to August. More than half, (£1.1trn), of this rise is accounted for by London and the South-East.
Martin Ellis, housing economist at Halifax, said: “Overall, housing equity held by UK households is in a healthy state, with total housing assets worth over £4.2trn more than the value of mortgage debt. Housing equity has grown by £1.6trn since 2006. For almost one in three homeowners, who own their home with no outstanding mortgage debt, their financial position is even stronger.”