The value of British properties has increased by 20% in the last five years, indicating that the country is sitting on a gold mine. That’s a staggering £1.6 trillion, around the same value as the market cap of Apple – the world’s most valuable company. What it means is that almost 12 million homes have jumped in figure by the national average of £49,000 or more since 2016.
The total value of homes in Britain now stands at a whopping £9.2 trillion. To put this picture into perspective, it is more than 4 times the GDP of the UK – the value of all services provided and goods produced each year. It is more than 4 times the value of all the companies listed on the FTSE 100. Curious to know what your home worth is?
Why is this happening?
The growth in prices of houses since 2016 has been due to ultra-low mortgage rates. In the past 18 months, the pandemic has increased buyer demand as they re-evaluate what they want from a home. But this demand has been satisfied by only a limited number of homes for sale, soaring house price growth.
What does it mean for you?
The steep increase in price of your house means that it could be worth more than you think. Contact us to get an instant estimate of your property’s value. If you are thinking of moving home, you may have more money for your new home than you realised.
Even if you plan to stay, you could get a cheaper mortgage, as you will be carrying off a lower proportion of its value. Understanding your home value, and the equity your property holds, can help you when making future plans.
What is happening around your property?
Homes in the south east have seen the biggest value increase over the past five years, collectively rising by £294 billion. By comparison, homes in London saw £214 billion value addition over the same timescale.
London is the most valuable region, with city homes collectively worth £2.4 trillion. It means that although central London accounts for just 13% of British properties, it houses a quarter of Britain’s housing wealth.
The south east has the second highest home value at £1.7 trillion, followed by the east of England at £1 trillion. At the other end, homes in the north east are collectively worth £197 billion, while those in Wales are £308 billion value.
Where have value of homes risen the most?
More than 2/3 of homes in 53 of the country’s 367 local authority areas have risen in worth by more than £49,000 since 2016. Monmouthshire tops the list, with 88% of homes increase in value by more than the national average. It is followed by Hastings at 83% and Trafford at 82%.