Britain’s Homes Could Be Valued At £9.2tn On The Open Market, Says Zoopla Report – – Daily Cryptocurrency and FX News

Britain’s Homes Could Be Valued At £9.2tn On The Open Market, Says Zoopla Report – – Daily Cryptocurrency and FX News

The total UK housing is valued at four times the value of the country’s economy by one property website.

It has been claimed that on the open market, Britain’s homes could be worth as much as £9.2 trillion – four times the value of the UK economy, and £550bn more than this time last year.

In the spring of 2021, when the restrictions on home buying started to be eased, house prices soared fueled by stamp duty breaks and a rush for larger homes. The lowest mortgage rates on record have also passed through to higher prices.

The recent boom, as said by the property website Zoopla, meant that Britain’s housing stock had risen in value by 20%, or £1.6tn, since 2016. The same report suggested that the average home was now valued at almost £50,000 more than half a decade ago.

The website’s “automated valuation model”, which takes into account sales recorded with the Land Registry each month and combines these prices with other factors including details given by owners and information about schools and crime rates, is the basis of the estimate. It includes all 28.6m homes in Britain, not just those that have recently been sold.

Throughout different parts of Britain, the figures underline the gulf in prices. According to Zoopla estimates, the combined value of homes in Westminster and Kensington and Chelsea, two London boroughs spanning 13 sq. miles, is roughly the same as that of the whole of Wales.

The valuation of homes in Westminster was estimated to be a cumulative total of £165bn, making it the priciest borough in Britain, while those in Kensington and Chelsea were put at £141bn.

The average price of a property in Westminster was £898,000 in July, 3.1% down from the previous year as shown by official figures from the Land Registry.

Housing estate and roads

The borough, however, still lays claim to some of the most eye-watering prices in London. The current listings include a 12-bedroom Mayfair townhouse on the market for £54.5m and a six-bedroom mansion with an asking price of £40m.

Additionally, the report breaks down the value of housing stock in each region and compares it with the volume. It shows that while 12.7% of homes are in London, they account for 25.3% of Britain’s housing value. For the northeast, it is 4.4% of homes that account for 2.1% of the total national value.

The report’s authors, Gráinne Gilmore and Izabella Lubowiecka wrote: “Over the last five years, the total value of homes has risen by £1.66tn, more than five times the total value of all GB housing transactions in 2021. It is also around the same value as the market cap of Apple, which is the world’s largest company by value.”

“The rise in values since 2016 signals modest but sustained annual house price growth across the UK since then, underpinned by low mortgage rates, which has resulted in a cumulative 20% uplift in the value of housing.”

Available figures showed the disparity in housing wealth and how it was concentrated in London, and underlined the “massive amount of money” in housing, according to Neal Hudson, a housing market analyst at BuiltPlace.

However, he added:

“The value of a home is what a buyer is willing to pay for it … If everyone decided to move out of their homes and they all tried to sell at once then it’s highly unlikely that they would be worth £9.2tn.”

In June, prices dipped since the big stamp duty breaks came to an end but there have been signs that a mismatch in demand for homes and supply of properties for sale could push them up again.

Family homes Picture perfect family homes

Buyers returned to the market in September after a “brief pull-back” as the stamp duty deadline neared, the latest report from the Royal Institution of Chartered Surveyors (Rics) showed.

Competition among buyers was prompted by the lack of available stock and as a result, 68% more of its members reported price rises than reported falls.

Simon Rubinsohn, Rics’ chief economist, said:

“The imbalance between demand and supply remains the most striking theme in the latest Rics residential market survey. And feedback from members provides little reason to believe this issue will be resolved anytime soon.”

He concluded by saying:

“Delivering higher numbers of new homes is part of the answer but they must be built in the areas where the shortfall is most visible. It is also vital that the tenure mix of the supply pipeline is broadly based helping to address the challenges both in the private rental market and in social housing.”

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Framing Bitcoin For Progressives - Helena Bitcoin Mining

Framing Bitcoin For Progressives – Helena Bitcoin Mining