Savills latest research has found the total value of residential property across the UK now stands at £5.75 trillion, up by £543 billion in one year, and £966 billion in five years.
In London alone, residential property has reached £1.5 trillion, more than all the housing stock in Scotland, Wales, Northern Ireland and the North of England combined. London’s two wealthiest boroughs, Westminster and Kensington & Chelsea, have a higher combined value than the whole of Wales.
The value of London's housing stock has risen by 20 per cent over the past year, up by 61 per cent over the last five years, with more than double the growth of any other region in the UK. Average prices in the capital now stand at £429,000, which is £300,000 more than the average price of a property in Scotland.
Source: Savills Research
Across the UK, owner occupied stock remains the dominant tenure, with the total value reaching £3.9 trillion in 2014, accounting for almost 15 million households.
The private rented sector has seen the greatest value growth over the past five years, up by 57 per cent. This has been driven by constraints on mortgage lending, increasing private rental accommodation and rising house prices.
Conversely, the number of homes owned with a mortgage has fallen by almost 800,000 over the past five years, as the credit crunch and subsequent restrictions on mortgage lending have taken effect.