The total value of all homes across the UK surpassed £9 trillion for the first time, approximately 3.5 times the size of the country's economy. In 2024, the housing stock increased by 3.9 per cent or £346 billion, reaching £9.1 trillion. Unmortgaged homes, valued at £3.4 trillion, represent the largest tenure by value and have grown the fastest, with an increase of 66 per cent (£1.36 trillion) over the past decade.
While owner-occupier housing is dominant in most regions, the private rented sector holds the most value in London. The value of privately rented homes in the capital reached £617 billion, surpassing the entire housing stock of Scotland. This new data follows a slight dip in the value of the UK's housing stock by £22 billion in 2023, the first decline since 2011.
The value of the UK housing stock rebounded in 2024 as affordability pressures eased, with prices increasing in many areas. This trend is expected to continue, as the Bank of England is anticipated to reduce interest rates further, which could boost transactional activity, particularly for those looking to move to second homes. First-time buyers may also benefit from upcoming changes to mortgage rules. As a result, house values are likely to see further upward pressure despite the impact of higher taxes and regulations on the private rented sector and lower levels of housebuilding.
Regional house price growth has been more evenly distributed over the past two years, with the North seeing a £137 billion rise, slightly outpacing the South's £125 billion growth. This shift in growth distribution reflects the current stage of the housing market cycle, with regions less reliant on debt showing more growth potential. However, significant housing wealth remains concentrated in London and the South East, which account for more than 40 per cent of the total UK housing value despite making up only 26 per cent of the housing stock.
The average home price in the UK reached a new record in January 2024, rising by 0.7 per cent to £299,138, according to the Halifax House Price Index. Meanwhile, UK GDP stood at £2.7 trillion in 2023, according to the Office for National Statistics. The data used in this report was compiled from the 2021 Census, the English Housing Survey, and sources from the Ministry of Housing, the Office for National Statistics, and Nationwide house price figures.
