This increase of more than £400bn over the past twelve months alone really demonstrates just how fast the domestic housing market is responding to growing levels of demand and inflation. As little as a decade ago, the equity tied up in private sector housing was only 2.9 times higher than secured mortgage debt but the total has now rocketed to 3.5 times higher, significantly outweighing the £1.1 trillion owed by the nations borrowers.
It comes as no surprise that the value of private housing stock has increased the most in Northern Ireland by a massive 165 per cent the region that has also seen the growth in house prices outstrip every other in the British Isles. This said, the housing stock in every UK region has increased by at least 50 per cent over the past 5 years.
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Greater demand on the housing supply in dense urban areas has had a knock on effect on property prices and subsequently the equity held therein, meaning that cities now account for more than one third of the total value of the UKs housing stock. Naturally London leads the pack at £649bn, followed by Birmingham, Leeds, Edinburgh and Manchester.
The North-South divide has narrowed with Northern cities accounting for seven out of the ten of those seeing the steepest increase in value, including Lincoln, Hull and Salford. More good news for investors is that the overall value of the nations housing stock has significantly outpaced inflation levels, growing faster than consumer prices.
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