UK Housing Market Hits a Record £9.1 Trillion in Value

The total value of all homes across the country has risen by £346 billion in 2024, bringing the total value to a record £9.10 trillion. This marks a 3.9% increase in housing value after a dip in 2023 when the UK’s housing stock fell by £22 billion for the first time since 2011. The total value of UK homes is now more than 3.5 times the country’s annual GDP, underscoring the significant role property plays in the UK’s economy.

A More Balanced Growth Across the Regions

Savills' latest research reveals that the value increase has been more evenly spread across the UK regions compared to previous years. The North of England has seen a more significant percentage rise than the South, with regions like the North West, Scotland, and Yorkshire & The Humber contributing £137 billion in value, compared to £125 billion in the South.

Areas outside London are seeing a steady increase in housing value, with the North West, Scotland, and Yorkshire & The Humber all contributing over £37 billion to the overall growth since 2022. In contrast, London’s housing stock has grown by £31 billion during this period, though it remains the largest contributor to housing value over the past decade, adding more than £1.2 trillion since 2014.

Resilient Property Market Outlook

Lucian Cook, Head of Residential Research at Savills, noted that “The value of Britain’s housing stock returned to growth in 2024 as affordability pressures eased and prices returned to growth in many areas.” The ongoing recovery is expected to be further bolstered by anticipated interest rate cuts from the Bank of England, which should lead to a rise in transactions, particularly among buyers who have been waiting for lower rates before moving.

This expected growth in transaction activity, along with planned reforms to mortgage rules, is likely to further increase pressure on property values. Despite concerns over increased taxation and regulatory changes, Savills believes that these factors will not dampen the growth of property values in the UK, especially given the strengthening demand for homes.

Strong Performance in Owner-Occupier Housing

One of the standout trends identified by Savills is the continued growth in housing owned outright. Since 2014, the value of unmortgaged housing stock has increased by £1.36 trillion, a 66% growth. In contrast, mortgaged housing stock has grown by £1.07 trillion (55%) over the same period. While owner-occupied properties dominate in most regions, the Private Rented Sector (PRS) holds the most value in London, with rental properties in the capital worth £617 billion, more than the combined housing stock in Scotland.

Investment Opportunities for UK Property Investors

The overall positive performance of the UK housing market presents an attractive opportunity for investors, particularly in the regions that are seeing significant growth. Areas outside London, such as the North West and Yorkshire & The Humber, are becoming increasingly appealing for investors due to their high-value appreciation and strong rental demand.

The growth in owner-occupied homes and the continued resilience of the PRS, especially in London, show that there are multiple avenues for investment. Whether you are looking to invest in high-growth regions or established markets like London, the UK property market offers long-term potential for both capital appreciation and rental yields.

Comment from Magnate Assets

Keith Egan, Managing Director at Magnate Assets, commented: “The latest growth in the UK housing market is a very positive sign for investors. With property values continuing to rise, especially in the regions outside of London, we are seeing increasing opportunities for both capital growth and rental returns. The expected interest rate cuts, coupled with the ongoing demand for housing, make this an ideal time for investors to explore the diverse opportunities available in the UK property market. We are confident that the market will remain strong in the coming years and provide substantial returns for well-positioned investors.”

As the UK housing market continues to thrive, investors have a unique opportunity to capitalize on the growth trends across various regions, particularly in the North, and in key sectors like the private rented sector. Talk to us on WhatsApp or book an online meeting with us today.