According to research by Halifax in November 2017 the value of the UK housing stock is now over £6 trillion.
With 68% of this wealth concentrated in the southern regions of the country (unsurprisingly), the average house price has risen from £187,310 in 2007 to £256,912 (November 2017). Which means the residential property market accounts for a compounded annual return 3.21%, 0.86% above the inflation average.
London (surprisingly?) has the highest level of equity averaging £360,193 per household. With the national net equity estimated at £4.7 trillion.
This is a healthy gearing rate of just 21%, which should give you some relief that the market is slightly more stable, even though values are now comparable to 2007 after inflation.
However, with the extended bull run we’ve seen in the public markets, company valuations that seem astonishingly high, reduced consumer spending, increasing household debt and flat wages it’s not all sunshine and rainbows.
Do you think a correction is coming and what are you doing about it?
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