Housing stock has risen 60% since 2005 | AVRillo

Housing stock has risen 60% since 2005

Thursday 12 November 2015  / Ruth Montia

Pound houses prices

New data from the Halifax displays Britain’s housing stock was worth an estimated £3.3 trillion in 2005, but has now risen to around £5.1 trillion. This rise is estimated at 53% over the last 10 years, even with most of that time being dominated by the economic downturn.

Throughout the last year, the value of private housing stock developed by £262 billion, mainly reflecting average house price growth of 4.0% during the year up to August.

This increase is equivalent to £76,316 per property owned by each homeowner or private landlord. In comparison though, the retail price index has only risen by 35% in the last decade.

Although mortgage debt has also grown, this is still showing as low compared to the value increase of the housing stock, which has climbed five times faster.

As a result, housing equity has risen to 60% –  from £2.4 trillion in 2005 to £3.8 trillion today.

Housing economist at the Halifax, Martin Ellis has said “Aggregate net housing equity held by households is in a healthy state with total housing assets worth nearly £4 trillion more than the total value of mortgage debt. Despite the rapid rise in mortgage debt over the past ten year, net housing equity has grown by £1.4 trillion since 2005”.