Residential properties in Britain gained £57bn in value over 2012, bringing their total market worth back to levels seen in 2009, according to Zoopla. The property website report that the value of homes across the country has now reached £5.96 trillion, which worked out the figure by combining the estimated current market worth of every home in Britain.
However, around 75% the total rise in property values seen over the last year came from the strength of the London market, with the value of homes in the capital appreciating by an estimated £42.4bn. Property values fared much better in England than in Scotland and Wales in 2012. The overall value of homes in England rise by £64.8bn or 1.2% over the year but fell by £1.2bn or 0.3% in Scotland and by £6.6bn or 3.1% in Wales. Two-thirds of Britain’s 250 biggest towns and cities saw property values increase over last year, with Bristol and Edinburgh also among the biggest gainers of 2012, recording increases of £2.3bn and £922m respectively, Zoopla said. The biggest year-on-year falls were recorded in Sheffield (down by £286m), Doncaster (down by £160m) and Stoke-on-Trent (down by £149m).
Long-term Market Dynamics and Trends
The increase in property values across Britain takes the total market value of homes back to the same level seen at the end of 2009. Homes gained £67bn in value over 2010 but saw a £124bn fall in 2011. Despite the fragile state of the UK housing market in recent years, the total value of all homes in Britain combined has increased by £1.9 trillion (46%) over the past decade, Zoopla said. However, homes across Britain are still worth around 10% less than they were at the peak of the market in 2007, when their total value was an estimated £6.62 trillion.
Although property values fell across Wales and Scotland last year, they have increased at a sharper rate than those in England over the last decade. England has seen an increase of 43% (£1.6 trillion) over the last 10 years, while Scotland has seen 84% growth (£183bn) and Wales recorded a 57% increase, amounting to £74bn. Lawrence Hall of Zoopla said: “Even with the worst economic downturn in living memory over the past few years, the value of Britain’s housing stock has grown a staggering amount over the last 10 years. “It’s hard to see if we will experience the same levels of year-on-year growth witnessed in the early noughties, but with overall values beginning to creep back up, homeowners should be feeling a little more confident.”
Article courtesy of Property Investor Today“”
