Analysis shows: The total value of British real estate reached a record high of £7.56 trillion in 2020

Analysis has shown that the total value of the UK’s housing stock reached a record £7.56 trillion in 2020.

According to Savills, the total value of homes has increased by around £380 billion compared to 2019.

Despite the financial consequences of the coronavirus pandemic, it was the strongest growth since 2015.

The value of residential property in the north of England (north west, north east, and Yorkshire and the Humber) saw its strongest growth since 2005, with an increase of £59 billion, bringing the total value to £1.13 trillion in 2020.

The value of mortgaged homes passed the £2.5 trillion mark for the first time and a new mortgage guarantee scheme of 5% over deposits announced in last week’s Budget will push that figure even higher, Savills said.

An increase of £170 billion pushed the total value of mortgaged homes to £2.62 trillion in 2020.

The value of non-mortgage homes was even higher at £2.88 trillion, with the total value of owner-occupied homes rising 5.8 percent over the year.

A fifth (20%) of this value was concentrated in the South East, with a further 17% in London.

Lawrence Bowles, director in Savills’ residential property research team, said: “People have reassessed their housing needs and preferences as a result of the pandemic, leading to an increase in transaction activity in the second half of last year.”

“This sparked a rapid increase in prices as many buyers, feeling financially secure, sought larger homes to accommodate the multiple demands of working from home and home schooling, while also having additional space for living and leisure.

“It also meant that the total value of mortgaged properties rose by 6.9% as people increased their loans to cover their lifestyle.”

According to Savills, property value in the north of England, the Midlands, Scotland, Wales and Northern Ireland combined reached a record £2.81 trillion in 2020.

Despite this growth, these regions, which together account for 56 percent of all British homes, still only account for 37 percent of property value.

The total value of housing stock in London and the South East rose by £167 billion to £3.19 trillion.

These two regions account for 42% of the total housing stock in the UK, but only 26% of all houses.

Savills used a range of sources for its research, including figures from the Office for National Statistics (ONS), the Department of Housing, Communities and Local Government and the UK Treasury.

Here is the total value of housing stock in the countries and regions of the UK according to Savills, followed by value growth in 2020:

– London £1.765 trillion, £101 billion

– Southeast: £1.420 trillion, £66 billion

– East of England, £855 billion, £39 billion

– South West, £706 billion, £41 billion

– North West, £561 billion, £33 billion

– West Midlands, £508 billion, £24 billion

– East Midlands, £418 billion, £22 billion

– Yorkshire and Humber, £411 billion, £20 billion

– Scotland, £390 billion, £17 billion

– Wales, £245 billion, £9 billion

– North East, £158 billion, £7 billion

– Northern Ireland, £117 billion, £4 billion