The value of property in the UK has soared by over £2,000 billion in ten years and the traditional north-south divide is narrowing, new research shows.
The total value of privately owned housing stock in the UK more than doubled over the past decade, a report from the Halifax shows.
There was an 118% increase from £1,719 billion in 1999 to an estimated £3,755 billion in 2009. During the same period, the retail price index rose by 29%.
The significant increase of £2,000 billion over the ten year period is equivalent to £33,000 per head of the UK population, it points out.
However, since 2007 the value of housing stock in the UK has declined by 8%, largely due to the global economic downturn. This reflects the reduction in house prices between the middle of 2007 and early 2009. The improvement in house prices in 2009 saw housing value grow by an estimated 2% during the year.
The research also shows that the north/south gap in the value of the country’s private housing stock narrowed during the noughties. Between 1999 and 2009, the value of housing in the north increased by 132% compared to 109% in the south. As a result, the north’s share of UK housing assets rose from 41% in 1999 to 44% in 2009.
Regionally, Northern Ireland saw the biggest increase in property value with a 198% rise from £31 billion in 1999 to £92 billion in 2009. The next largest rises were in the North East, 147%, Scotland, 145%, Yorkshire and the Humber 139% and East Midlands at 133%. The smallest increases were in the South East (100%) and the East of England and West Midlands both at 107%.
All regions have recorded a decline in the value of their housing stock since 2007. London dropped 5%, the North East was down 7%, the North West 8% and the South East fell 8%. In Northern Ireland the value of housing is estimated to have fallen by 19% since 2007, following a dramatic rise in the preceding few years.
‘The past decade has seen a substantial increase in the value of housing assets in the UK, with all regions recording average annual increases of 7% to 12%. Notably, there are real signs of a narrowing north-south divide as the northern regions recorded bigger increases,’ said Martin Ellis, housing economist at Halifax.[Property Wire News]