The value of UK homes hit a new record of £7.3tn last year, driven by gains in the South and the Midlands.
Savills analysis shows an increase of £190bn from the previous year, with the biggest gains in the South East (up by £29.9bn), South West (up by £28bn) and the West Midlands (up by £26.9bn).
London home values fell by £26.2bn to £1.8tn. This is the first decline recorded by Savills since 2009. The capital accounts for almost a quarter of the UK’s housing value.
House price growth contributed 72% of the gains, adding £138bn to housing value. The remaining £52bn (28%) came from new housing development, which saw the highest proportion of value uplift since 2011.
Tenure analysis revealed that PRS homes gained the largest relative uplift, rising by 4.1% in the year to £1.6tn. This equated to an increase of £60.9bn, against growth of £97.7bn in owner occupied homes. The total value of these homes sits at more than £4.8tn.
Lawrence Bowles, residential research analyst at Savills, said: “It’s great that we’re seeing more housing delivery, but development will have to make up a much higher proportion of new housing value if we are to come anywhere near building the homes this country needs.”
To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette
