You are here: Home - Mortgages - First Time Buyer - News -

Value of UK’s housing stock hits record high in 2018

0
Written by:
14/01/2019
The value of UK housing stock hit a record high in 2018, despite a slowdown in the housing market amid Brexit concerns, data showed.

The value of housing stock rose by £190bn, or 2.7%, to £7.29trn, with the private rented sector rising faster than other tenures, up 4.1% to £1.56bn, according to analysis released by real estate adviser Savills.

The report found that gains came from the regional markets, as London’s residential stock recorded a 1.5% fall, the first since 2009, losing £26.2bn.

Over a quarter of the total £190bn value increase came from new housing development, the highest proportion contributed by new housing development since 2011, reflecting the government focus on building more new homes.

Across the UK as a whole, price appreciation added a total £138bn, 72% of total gains, equivalent to growth of £4,800 per home.

The private rented sector exceeded £1.5trn for the first time and grew the fastest of any tenure at 4.1% to £60.9bn.

Equity now totals £1.32trn, leaving borrowing at under 14%, as the residential investment sector becomes increasingly dominated by cash investors.

Regional overview

Still, the total value of London’s homes stands at £1.77tn, some 24.3% of the UK total.

Wales was the region showing the biggest gains in percentage terms, with housing value up 6.3%, adding £13.4bn to total £226.1bn.

The East Midlands and West Midlands followed close behind, at 6.2% and 6.1% respectively.

Meanwhile the value of stock in the South East grew the fastest in absolute terms, with £29.9bn added on the back of growth of just 2.2%.

Wealth concentrated in older hands

Lawrence Bowles, residential research analyst at Savills, said that this analysis 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.

He added: “We see that wealth concentrated in ever fewer, older hands, to the extent that the UK’s over 50s hold a quarter of all UK homeowner equity, while the over 65s in London and the South of England alone account for over three-quarters of the total.

“At the same time, as affordability becomes more stretched, younger households are having to put off buying their first home until later in life.

“It’s great that we’re seeing more housing delivery, but development will have to make up a much higher proportion of new housing value if we are to come anywhere need building the homes this country needs.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Are you planning to make a last-minute investment into your ISA or SIPP during this tax year? Here are five tips to… https://t.co/lGjHix7F7y
  • Forget a delay, more than a third of private investors favour a no-deal Brexit - https://t.co/SW9dXjCK2C #Brexit
  • Have you ever tried to save money but unintentionally ended up spending more in the process? Here's how to avoid th… https://t.co/ORmTNOVmV3

Read previous post:
ISAs are almost 20! Here’s how much income tax you could have saved…

As ISAs approach their 20-year anniversary, Hargreaves Lansdown estimates that £8.7trn has been invested in the tax-efficient savings account over...

Close