Nearly 12 million UK homes have increased in value by £49,000 or more since 2016. So, you are probably thinking, ‘how much is my home worth?’
The total value of British homes has soared by 20% in the past 5 years. That is a whopping £1.6 trillion! This is around the same figure as the market cap of Apple – the world’s most valuable company.
This means that almost 12 million homes have jumped in value by the national average of £49,000 or more since 2016, according to the latest research conducted by Zoopla.
The total value of homes in the UK now stands at a staggering £9.2tn. To put this eye-watering figure into perspective, it is more than 4 times the GDP of the UK – the value of all goods produced, and services provided each year!
And it is more than 4 times the value of all the companies listed on the FTSE 100.
What is behind this?
House price growth since 2016 has been underpinned by the ultra-low mortgage rates. And in the past 18 months, the pandemic has driven buyer demand as people reassess what they want from a home.
But this demand has been met by only a limited supply of homes for sale, fuelling house price growth.
What could this mean for you?
The rapid increase in house prices means that your home could be worth more than you think. You can get instant estimate property values online by searching for property price calculators.
If you are considering moving, you may have more money for your next purchase than you realised. Even if you plan to stay put, you could qualify for a cheaper mortgage, as you will be borrowing a lower proportion of its value.
Understanding the value of your home, and the equity you hold within the property, can help when it comes to making future plans.
What is happening in your area?
Properties in the South East have seen the biggest increase in value over the past 5 years, collectively rising by £294 bn.
In comparison, homes in London saw £214 bn added to their value over the same timescale.
Even so, London is the most valuable region, with homes in the city collectively worth £2.4 tn. This means that although London accounts for just 13% of British properties, it is home to a quarter of Britain’s housing wealth.
The south east has the second highest value of homes at £1.7 tn, followed by the east of England at £1 tn.
At the other end of the scale, homes in the north east are collectively worth £197 bn, while those in Wales are valued at £308 bn.
Where have homes risen in value the most?
More than two-thirds of homes in 53 of the country’s 367 local authority areas have risen by more than £49,000 since 2016.
Monmouthshire tops the list, with 88% of homes increasing by more than the national average.
It is then followed by Hastings at 83% and Trafford at 82%.
So, what do you think of these statistics? Let us know by leaving a comment on our social media posts!