Six trillion is an awfully large number and it is also the figure that has been exceeded in Savills latest residential report which analyses the total value of housing stock across the UK. When put into context, that figure is £385 billion more than it was last year.
As the report highlights, ‘seventy-nine percent of this total is held as net housing wealth, with £1.32 trillion of mortgage debt set against it.’ It goes on to state how ‘over £2 trillion of net housing wealth held is by owner occupiers who have paid off their mortgage’, meaning that the distribution of housing wealth is changing.
One other seriously startling fact is that ‘the value of housing stock in the borough of Kensington & Chelsea alone is more than double the amount handed out in prize money by the National Lottery since its inception in 1994.’
Overall, the price of housing has increased for a variety of reasons, including increased competition in the mortgage lending market, stronger economic growth, demand from cash-only buyers, and a relative lack of appropriate homes for sale in the right locations. The average house price across the UK rose by 4.5% in 2015, with certain London boroughs reaching an increase of 11%.
The government has reacted to these figures by launching schemes such as help to buy, encouraging home ownership across the UK with the hope of leaving generation rent as a thing of the past.
At Inspired Homes, we wholeheartedly back these schemes as we believe that hard-working Londoner’s should have the chance to own their own home. That is why we work tirelessly to build high-quality London and Greater London apartments with excellent resident facilities, which start at just £183,950.
Of course, we have help to buy in place, which means that a London home could be yours with just a 5% deposit.
If you would like to find out more, please contact our team on 020 8688 6552.