Residential Property Focus
2016 Issue 1

Residential Property Focus 2016 Issue 1
Accounting for the Billions and Trillions

24 February 2016, by Lucian Cook

Our Valuing Britain exercise for 2015 reveals some staggering sums and a divided market

Six trillion, one hundred and sixty five billion, two hundred and two million, two hundred and five thousand, nine hundred and twenty eight pounds is a seriously big number.

It is our best estimate of the total value of housing stock across the UK at the end of 2015 (accurate we hope to within the odd one hundred billion or so).

 

Seventy-nine percent of this total is held as net housing wealth, with £1.32 trillion of mortgage debt set against it. These numbers reflect how housing has become both a source and store of wealth across the UK.

However startling the sheer size of these sums, it is the way housing wealth is distributed that has become most scrutinised by society.

Over £2 trillion of net housing wealth held is by owner occupiers who have paid off their mortgage. Owners of stock in the private rented sector hold broadly the same amount of equity as mortgaged owner occupiers, reflecting the respective rise and decline of each sector.

The value of housing stock in the borough of Kensington & Chelsea alone is more than double the amount handed out in prize money by the National Lottery since its inception in 1994.

Put the Squeeze on

The Government’s response has been to try to reinvigorate homeownership through schemes such as Help to Buy and Starter Homes, to put the squeeze on private landlords and to ratchet up the taxation of high value homes.

Drawing on more detail from our mammoth valuation exercise, this issue of the Residential Property Focus examines the potential impact of that political response.

 

 
Value of UK Housing Stock in 2015

Articles from Residential Property Focus 2016 - Issue 1

Shifting Patterns of Housing Wealth

Differing patterns of price growth in 2015 reflect the shifting cycle of the UK’s housing market

What Lies Ahead?

24 February 2016

What Lies Ahead?

Neal Hudson evaluates the lessons learnt from the valuation of UK housing stock in 2015 and looks ahead to the future

Making A Move To The Country

24 February 2016

Making A Move To The Country

Country locations are set to outperform London as the prime markets enter the next stage of the housing cycle

Concentrations Of Wealth

24 February 2016

Concentrations Of Wealth

London’s density of housing contributes to its wealth in conjunction with strong price growth

Is This The End Of A Golden Age?

Government incentives have increased the tax burden on buy-to-let investors

From Generation Rent To Generation Buy

The Government wants a million new homes built in England by 2020, but its current policies risk undermining this stated goal

What Price The World?

24 February 2016

What Price The World?

Worldwide residential real estate value currently stands at a staggering US$162 trillion, though this is unevenly distributed across the globe

 
 

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Key contacts

Lucian Cook

Lucian Cook

Director
Residential Research

Savills Margaret Street

+44 (0) 20 7016 3837