Value of UK housing market hits £10.7 trillion
Despite higher mortgage rates and increasing inflation, the value of homes across the UK housing market has reached £10.7 trillion.
According to property portal Zoopla, two in three (66 per cent) homeowners have seen their homes increase in value by at least one per cent over the last 12 months.
This means these homes have increased on average by £7,000, or £19 per day.
Other properties, however – some 11.1 million homes – have fallen in value by at least one per cent, or seen an average reduction of £7,700, in the last six months.
A pick-up in market activity in the first quarter of 2023 has supported a reversal of some losses with the average UK home increasing in value by £342 in the last three months.
Despite nearly 9.2 million homes increasing in value over the last six months, the top 10 areas with the highest proportion of homes going up in value are concentrated in the north and Midlands.
Only one postal area is located in the south (Dorchester) where 46,000 homes have increased in value since November 2022.
Homeowners located in Yorkshire and the Humber are disproportionately represented with four postal areas seeing increases in value: Halifax, Wakefield, Huddersfield and Bradford.
The highest concentration of homes falling in value over the last six months are predominantly coastal locations across the south of England.
These locations recorded a rush of buyers since 2020, pushing prices higher as people relocated or looked to commute longer distances to work.
Zoopla data shows over 50 per cent of homes falling in value in these areas as demand cools.
Richard Donnell, executive director at Zoopla says: “With a value of £10.7 trillion the housing market is a huge part of the nation’s wealth.
“Everyone’s home has its own value and trajectory of how that value is changing over time.
“While the headlines report that UK house prices have been falling, our analysis finds that there is more of an even split between homes with price gains and price falls over the last six months when looking at trends on a property level.
“The value a homeowner can get for their home unlocks the options for their next move or impacts how good a rate they might get when they remortgage.
“More and more homeowners are tracking homes month by month to better understand their most valuable asset and how to make the right decision around their home.”