Value of housing soars by over £2,000 billion in ten years

The total value of privately owned housing stock in the UK more than doubled over the past decade, new Halifax research shows.

There was a 118% increase from £1,719 billion in 1999 to an estimated £3,755 billion in 2009. During the same period, the retail price index rose by 29%.

The significant increase of £2,000 billion over the ten year period is equivalent to £33,000 per head of the UK population.

However, since 2007 the value of housing stock in the UK has declined by 8%. This reflects the reduction in house prices between mid 2007 and early 2009. The improvement in house prices in 2009 saw housing value grow by an estimated 2% during the year.

Narrowing North-South divide

The north-south gap in the value of the private housing stock narrowed during the 'noughties'. Between 1999 and 2009, the value of housing in the north increased by 132% compared to 109% in the south. As a result, the north's share of UK housing assets rose from 41% in 1999 to 44% in 2009.

Northern Ireland leads the way

Regionally, Northern Ireland saw the biggest increase in housing value with a 198% rise from £31 billion in 1999 to £92 billion in 2009. The next largest rises were in the North East (147%), Scotland (145%), Yorkshire and the Humber (139%) and East Midlands (133%). The smallest increases were in the South East (100%) and the East of England and West Midlands (both 107%).

All regions have recorded a decline in the value of their housing stock since 2007: London (-5%), North East (-7%), North West (-8%) and the South East (-8%). In Northern Ireland the value of housing is estimated to have fallen by 19% since 2007, following a dramatic rise in the preceding few years.

Martin Ellis, housing economist at Halifax, commented: "The past decade has seen a substantial increase in the value of housing assets in the UK, with all regions recording average annual increases of 7%-12%. Notably, there are real signs of a narrowing north-south divide as the northern regions recorded bigger increases."