Value of housing stock up to £8.4 trillion

THE total value of all UK homes broke the £8 trillion barrier in 2021, reaching a new record high of £8.4 trillion, according to a report by Savills.

This represents an increase of £804 billion, or 10.6 per cent, from the previous high of £7.61 trillion in 2020. In total, the value of UK housing has grown by 75.7 per cent, or £3.6 trillion, over the last decade.

“The stamp duty holiday and low interest rate environment created extremely strong market conditions in 2021, encouraging many to move who perhaps wouldn’t have otherwise,” said Lawrence Bowles, a director in the Savills residential research team.

“But, over and above that, people’s lifestyle needs and housing preferences hugely shifted over the course of the pandemic, with many reassessing what they want out of their living environment in response to increased working from home and the need for more inside and outside space.

“A surge in demand for the best homes in hotspots across the UK led to a record number of housing transactions, and significant house price growth in many areas. As a result, we experienced an exceptionally strong year, which has pushed the value of the UK’s housing stock to another record high.”

In England, the South East saw the greatest increase in housing value in 2021, rising by £155 billion or 10.9 per cent. Despite being home to less than half of all housing stock (44 per cent), London and the South still hold 62 per cent of the total value UK housing stock.