Home values across the UK has increased by £39.1bn in 2009, according to Zoopla, and although the increase in modest, it is a massive improvement over 2008 when property values fell £811.3bn.

However, with the total value of the British residential housing stock now standing at £5.3 trillion, up marginally on one year ago, it still remains over three quarters of a trillion pounds below its peak of £6.1 trillion in late 2007. The average home in Britain is now worth £205,591 according to Zoopla, up £1,517 (+0.7%) from one year ago, a daily gain of £4 for the average property. This is in stark contrast to 2008 when property values fell by £31,355 (-13.3%) on average, equivalent to a daily loss of £86 per home.

Property prices in England have climbed +0.9% over the past 12 months, having fallen -13.9% in 2008. Scottish values have also risen in 2009 by +0.6% to an average of £156,905 up from £155,597 at the end of last year. However, the property market in Wales is yet to rebound and has seen average values drop a further -2.5% (£3,866) in 2009 on top of the -13.2% decline in 2008.
Nicholas Leeming, commercial director of Zoopla, said: “2008 was undoubtedly the ‘annus horribilis’ for homeowners. But, property prices have stabilised this year, rising gradually since April after a fairly weak first quarter. We are still a long way from the values seen before the recession took hold, but the housing market has not worsened in 2009 as some had feared and recovery signs are starting to take hold. With the biggest share of the UK’s household wealth - 39% - in property, it is far better news for homeowners this Christmas than last with their principal asset in better shape than at the start of the year.”