The total value of private housing in the UK now stands at over £5 trillion, according to figures from Halifax, with London driving the surge and slower growth in the north-west meaning the region is likely to have seen less exposure to property tax like capital gains and stamp duty.
At the end of 2005, total UK private housing stock was valued at £3.3 trillion, rising to £4.8 trillion by the end of 2014 – now, using estimates based on council tax bands, Halifax believe that figure has grown further to reach £5.1 trillion.
That represents a 53% rise in total property valuations over the past decade, although most regions have not performed as strongly as the average suggests.
London’s housing market has skewed the average substantially, with 105% growth over the decade, while Scotland has also seen valuations rise by much more than the UK average, at 72%.
The east and south-east regions of England only just performed above-average, by 1-2% each, while in general the rest of the country saw price growth of around 30-35%.
In amongst this, the north-west scored a 29% increase over the past decade, from £305 billion of total housing stock in 2005 to £375 billion in 2014 and £394 billion (estimated) in 2015.
Halifax also offered details on how much mortgage debt is outstanding in each region – and in the north-west, £111 billion is owed of the £394 billion total value, meaning net equity of £283 billion at present, or an estimated £109,043 per household.
Of course, the biggest impacts on mortgage debt come from people moving into the region, out of it, or between properties within the north-west, although interest also adds to the amount owed, while rising property values can effectively increase the amount of equity held by the homeowner.
Together, these factors can affect your exposure to property tax like stamp duty and capital gains when you come to sell – making it worthwhile to consult our property accountants before putting your home or rental property on the market.