The total value of all homes across the UK topped £9trn for the first time, roughly 3.5 times the size of the country’s economy, according to Savills.
The country’s housing stock grew by 3.9%, or £346bn, to hit £9.1trn last year, says the property agent.
Unmortgaged homes make up the largest tenure by value, at £3.4trn, and is the fastest growing segment, jumping by 66%, or 1.36tn, over the past decade.
Owner-occupier housing dominates in most regions, but in London, the private rented sector holds the most value.
Privately rented homes in the capital total £617bn — and is worth more than all the housing stock in Scotland, combined.
This latest set of figures come after last year the total value of the UK’s housing stock fell by £22bn for the first time since 2011.
Savills head of residential research Lucian Cook says: “The value of Britain’s housing stock returned to growth in 2024 as affordability pressures eased and prices returned to growth in many areas, pushing the total value of the UK’s housing stock to another record high.”
“With the Bank of England expected to cut interest rates further over the coming months, we anticipate an increase in transactional activity, particularly among second-steppers who have held off moving until rates fall. While first-time buyer activity is expected to be boosted by planned reforms to mortgage rules.
“This in turn should lead to further upward pressure on values, mitigating any impact that increased taxation and regulation will have on the private rented sector, as well as lower levels of housebuilding.”
According to the agent, house price growth has been more evenly distributed across UK regions over the past two years, with the value of housing in the North, at £137bn rising by more than in the South, at £125bn.
Savills research analyst Dan Hill adds: “A shift in the distribution of growth over the past two years is largely reflective of where we are in the UK housing market cycle.
“Regional markets that are less reliant on debt have more capacity for growth and have therefore remained the most robust.”
“Despite this, vast housing wealth remains concentrated in pockets in London and the South East. These two locations alone still account for more than 40% of the total UK housing value, even though they are home to just 26% of housing stock.”
Earlier this month, the average price of a home lifted by 0.7% in January to a record £299,138, according the Halifax house Price Index.
UK gross domestic product came in at £2.7trn in 2023, according to the Office for National Statistics.
Savills data was compiled using the 2021 Census, English Housing Survey and Ministry of Housing sources as well as the Office for National Statistics and Nationwide house price figures.
