The total value of all homes across the UK now stands at £9.1trn, according to new research by Savills.
This figure is more than 3.5 times the annual GDP of the UK.
In 2023, the total value of the UK’s housing stock fell for the first time since 2011, having dropped by £22bn. However, last year saw a return to growth, with £346bn in value added to the nation’s housing stock, a rise equating to 3.9%.
Savills stated that housing owned by unmortgaged occupiers has continued to be the fastest growing tenure, with value in this segment increasing by £1.36trn (66%). This compares to growth of £1.07trn for mortgaged housing stock, which has increased by 55% since 2014.
Head of residential research at Savills, Lucian Cook, said: “The value of Britain’s housing stock returned to growth in 2024 as affordability pressures eased and prices returned to growth in many areas, pushing the total value of the UK’s housing stock to another record high.
“With the Bank of England expected to cut interest rates further over the coming months, we anticipate an increase in transactional activity, particularly among second-steppers who have held off moving until rates fall. While first-time buyer activity is expected to be boosted by planned reforms to mortgage rules.
“This in turn should lead to further upward pressure on values, mitigating any impact that increased taxation and regulation will have on the PRS sector, as well as lower levels of housebuilding.”
According to Savills, growth has been much more evenly distributed across the UK regions over the past two years, with the value of housing in the North increasing by more (£137bn) compared to the South (£125bn).
The North West, Scotland, and Yorkshire and Humber have each added more than £37bn to the value of their housing stock since 2022, exceeding the £31bn worth of growth in London.
“A shift in the distribution of growth over the past two years is largely reflective of where we are in the UK housing market cycle,” added research analyst at Savills, Dan Hill. “Regional markets that are less reliant on debt have more capacity for growth and have therefore remained the most robust.
“Despite this, vast housing wealth remains concentrated in pockets in London and the South East. These two locations alone still account for more than 40% of the total UK housing value, even though they are home to just 26% of housing stock.”
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