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Housing equity outweighs mortgage debt

Halifax has calculated that housing equity significantly outweighs mortgage debt with UK private stock now worth 3.8 trillion.

This means housing equity is 3.5 x the value of outstanding mortgage debt of 1.1 trillion.

The value of the housing stock has increased by 78% over the last five years, with stock rising by 12%, or more than 400bn, in 2006.

The lender also says that the value of all housing assets in the UK has increased by 410bn, against a 100bn increase in mortgage balances.

Over the past five years, the value of the private housing stock has increased most in Northern Ireland, at 165%, and the North at 130%.

Each region of the UK has seen at least a 50% increase in the value of its housing stock since 2001.

The value of the UK residential housing stock has grown at a much faster rate than overall consumer prices.

The underlying retail price index has risen by only 14% over the past five years, versus a 78% increase in the value of the housing stock.

Tim Crawford, group economist at Halifax, says: The UK’s household balance sheet is in good shape.

“Total housing assets are now worth 3.5 times the overall level of housing debt.

“A decade ago, 2.9 x was the equivalent figure.”


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