The total value of the UK’s private housing stock has broken through STG5 trillion this year as the property market recovery has taken off, a report has found.
The collective worth of privately-owned homes across the country has increased by STG1.83 trillion over the past decade – and around one third of this extra value has been added in the past year alone, Halifax found.
Almost half of the value of the country’s STG5.06 trillion ($A9.24 trillion) worth of homes comes from London and the southeast.
In London, the value of owner-occupied and privately rented homes has more than doubled over the last 10 years, from STG545 billion in 2004 to STG1.14 trillion in 2014.
Halifax estimates that on average, Londoners are sitting on STG313,466 worth of equity in their home.
Homes in the southeast are now worth STG950 billion collectively, marking a 55 per cent increase over the past decade.
Over the past year, the value of UK housing stock has surged by STG630 billion or 14 per cent. This percentage increase marks the fastest annual growth since a 22 per cent year-on-year rise was recorded in 2002.
After London, Scotland has seen the fastest growth in the value of private housing stock over the past decade, with a 96 per cent increase taking its total worth to STG333 billion.
The West Midlands and the northeast have seen the smallest growth in collective values over the past decade, at 32 per cent and 33 per cent respectively.
Martin Ellis, a housing economist at Halifax, said: “An increase in average property values combined with a rise in the number of private new builds has contributed to the increase in the value of housing stock across all UK regions, although the growth is stronger in London and the South East.”
Halifax used a combination of government and commercial figures to make its calculations.