The total value of all homes across the UK has surged to a record-breaking £9.10 trillion, according to new research by property firm Savills. This milestone comes after a period of decline in 2023, when the total value of the country’s housing stock fell for the first time since 2011, dropping by £22 billion. However, 2024 saw a turnaround, with an increase of £346 billion (+3.9%) in total value.
The UK’s housing stock is now valued at more than 3.5 times the nation’s annual GDP, reflecting the enduring strength of the property market despite economic fluctuations.
Interest Rate Cuts Expected to Boost Market
Lucian Cook, head of residential research at Savills, attributed the recovery to easing affordability pressures and renewed price growth across many areas.
“The value of Britain’s housing stock returned to growth in 2024 as affordability pressures eased and prices rebounded in several regions, pushing the total value of the UK’s housing stock to another record high,” Cook said.
He added that with the Bank of England expected to lower interest rates further in the coming months, increased transactional activity is anticipated, particularly among homeowners looking to move up the property ladder after holding off due to high borrowing costs. Additionally, planned reforms to mortgage rules could spur greater first-time buyer activity.
“This should place further upward pressure on values, mitigating any impact from increased taxation and regulation in the private rented sector (PRS), as well as lower levels of housebuilding,” Cook noted.
Northern Regions Outpace South in Growth
Savills’ data highlights a significant shift in regional property trends over the past two years, with housing stock in the North growing at a faster rate than in the South. The total value of homes in the North rose by £137 billion compared to £125 billion in the South.
The North West, Scotland, and Yorkshire and The Humber each recorded growth of more than £37 billion since 2022, surpassing London’s £31 billion increase. While London and the South East have added the most value in absolute terms over the past decade—more than £1.2 trillion combined—their percentage growth has been more modest relative to other regions.
Dan Hill, research analyst at Savills, attributed this shift to cyclical changes in the housing market. “Regional markets that are less reliant on debt have more capacity for growth and have therefore remained the most robust,” he said.
However, London and the South East remain dominant in terms of overall property wealth, accounting for over 40% of the UK’s total housing value despite making up just 26% of the country’s housing stock.
Unmortgaged Housing Stock Sees Strongest Growth
Savills’ research also indicates a growing divide between the value of homes owned outright and those held with a mortgage. Since 2014, the value of homes owned by mortgage-free occupiers has increased by £1.3 trillion (66%), compared to £1.07 trillion (55%) for mortgaged properties.
Owner-occupier stock dominates most UK regions, but London remains an exception, where the PRS holds the most value. The capital’s PRS is valued at £617 billion—more than the total value of all housing stock in Scotland.
“In recent years, we have seen an increasing number of homeowners becoming mortgage-free, which has widened the divide between the value of outright-owned homes and those purchased with a mortgage,” Cook explained. “Meanwhile, mortgage debt growth has remained more subdued due to affordability constraints and greater caution from lenders.”
As the property market continues to evolve, analysts will be closely watching the impact of interest rate cuts and policy reforms on housing affordability and market activity in the coming months.