Housing stock's value up 53% in 10 years, despite downturn

The value of Britain's housing stock has risen 53 per cent over the past decade, despite most of that time being overshadowed by the economic downturn.

Data from the Halifax shows that Britain's housing stock was worth an estimated £3.3 trillion in 2005 but is worth some £5.1 trillion now. 

The £1.8 trillion increase is equivalent to £76,316 per property owned by each homeowner or private landlord. By comparison, the retail price index has risen by only 35 per cent in the past decade.

In the past year, the value of private housing stock grew by £262 billion, mainly reflecting average house price growth of 4.0 per cent in the year to August

Although mortgage debt has also grown - it's up 35 per cent since 2005 from £942 billion to £1.28 trillion - this is low compared to the value appreciation of the housing stock, which has risen five times faster. 

As a result, housing equity has risen 60 per cent over the past 10 years from £2.4 trillion in 2005 to £3.8 trillion today.

"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" says Martin Ellis, housing economist at the Halifax.