Since 2007, the total value of private residential property in the UK has grown by £1.94 trillion (or 48%) to an estimated £6.02 trillion. In the past year alone, the value has apparently grown by £376 billion, mainly reflecting average house price growth of 5%2 in the year to August.
The average value per household in the UK now stands at £256,912, up from £187,310 in 2007, representing an increase of close to £70,000 (37%).
This increase has been driven by a 45% rise in the average house price and the stock of privately owned homes expanding by 1.9 million (from 21.5 million to 23.4 million). In London, the average value per household is almost half a million (£498,000) – three and a half times higher than in Northern Ireland with the lowest value of £141,681.
Perhaps unsurprisingly, net housing wealth peaks as homeowners reach retirement age, with 40% of wealth in households aged over 65. Three in five (61%) of homeowners in this age bracket are mortgage free. Almost a quarter (24.4%) of total housing wealth is held by households in the age group from 55 to 64. Almost half (47%) of those aged 25 to 44 have a mortgage and account for 15.4% of total housing wealth. Just 0.1% net housing wealth is held by those aged 16 to 24.
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