The rise equates to more than £400 billion. The value of the housing stock has increased by 78% over the last five years from £2.1 trillion in 2001.
UK household balance sheet is in good shape
Housing equity significantly outweighs mortgage debt. The value of housing assets increased by £410 billion in 2006 versus a £100 billion increase in mortgage balances. In 2006, the value of the private housing stock (£3.8 trillion) was 3.5 times the value of outstanding mortgage debt of £1.1 trillion.
Ten years ago, private sector housing assets were only 2.9 times higher than secured mortgage debt. The value of housing assets exceeded the total value of outstanding mortgage balances by £2.7 trillion in 2006, up from £2.4 trillion in 2005.
Northern Ireland sees strongest rise in housing stock value over the past five years
Over the past five years, the value of the private housing stock has increased most in Northern Ireland (165%) and the North (130%). Each region of the UK has seen at least a 50% increase in the value of its housing stock since 2001.
Cities accounts for more than one third of the value of the UK's housing stock
With London at the forefront, the UK's cities account for 35% of the value of the total UK housing stock at £1.3 trillion. London makes up almost half of the value of the total city housing stock at £649 billion. After London, the cities with the most valuable private housing stocks are Birmingham (£41billion), Leeds (£35billion), Edinburgh (£33billion) and Manchester (£32billion). In 30 cities, the individual value of the private housing stock is more than £10billion. 55 cities across the UK were included in the analysis
Northern cities account for the steepest rise in value over last five years
Northern English cities accounted for seven of the ten cities with the sharpest rise in the value of their housing stock over the past five years. Since 2001, the value of the housing stock has increased at the sharpest rate in the cities of Lincoln (173%), Kingston upon Hull (161%) and Salford (140%).
Housing wealth has increased substantially in the North over past five years
The North - South housing wealth gap has narrowed over the past five years. In 2006 the South accounted for 55% of the UK's total housing assets, compared with 62% five years ago, while the North has seen its share rise to 45% in 2006 from 38% in 2001. However, the North-South private housing value split held steady during the past year.
The increase in value of the housing stock has significantly outpaced inflation
The value of the UK residential housing stock has grown at a much faster rate than overall consumer prices. The underlying retail price index (RPIX) has risen by only 14% over the past five years versus a 78% increase in the value of the housing stock.
Tim Crawford, group economist at Halifax, commented: “The combined value of all privately owned houses in the UK was a record £3.8 trillion by the end of last year.
"The UK's household balance sheet is in good shape. Total housing assets are now worth 3.5 times the overall level of housing debt. Ten years ago, 2.9 times was the equivalent figure."
