Rise of 6% sees NI hous­ing stock reach a value of £100.7bn in 2018

Belfast Telegraph - - NEWS - BY VICKY SHAW

THE to­tal value of North­ern Ire­land’s hous­ing stock reached £100.7bn in 2018, anal­y­sis has found.

Al­though it rep­re­sents only a tiny frac­tion of the UK to­tal, last year saw the lo­cal hous­ing stock rise in value by 6%.

That rep­re­sents an in­crease of £5.7bn, real es­tate ad­viser Sav­ills found.

The to­tal value of the UK’s hous­ing stock reached a record £7.29 tril­lion in 2018, the anal­y­sis found.

De­spite a slow­down in the hous­ing mar­ket amid Brexit con­cerns, the to­tal value of UK hous- ing stock in­creased by £190bn. The gains came from out­side Lon­don, as the to­tal value of its res­i­den­tial hous­ing stock recorded a £26.2bn fall, the first de­crease since 2009.

Lon­don’s hous­ing stock is still worth £1.77 tril­lion — more than four times the com­bined value of homes in Birm­ing­ham, Manch­ester, Ed­in­burgh, Glas­gow, Cardiff, Bris­tol, Liver­pool, and Sh­effield.

The cap­i­tal still ac­counts for nearly a quar­ter (24.3%) of UK hous­ing value, com­pared with a fifth a decade ago, ac­cord­ing to Sav­ills.

Some £137.7bn of the in­crease in the value of hous­ing stock last year was due to house prices go­ing up, equat­ing to a

£4,800 price in­crease per home. While 72% of the in­crease in the value of hous­ing stock last year came from house price in­creases, the re­main­ing 28% — or £52.6bn — was due to new homes be­ing built.

Sav­ills said this is the high­est pro­por­tion con­trib­uted by new hous­ing de­vel­op­ment since 2011 and re­flects the Gov­ern­ment fo­cus on build­ing more new homes.

Within the £7.29 tril­lion to­tal, the col­lec­tive value of the pri­vate rented sec­tor topped £1.5 tril­lion for the first time.

Across the UK, in per­cent­age terms, Wales was the re­gion show­ing the big­gest gains in the value of hous­ing stock in 2018, with a 6.3% in­crease adding £13.4 bil­lion.

The East Mid­lands (6.2%) and West Mid­lands (6.1%) fol­lowed closely be­hind, with North­ern Ire­land next.

In cash terms, the value of stock in the South East saw the big­gest in­crease across the UK last year, with £29.9bn added on the back of growth of 2.2%.

“Our anal­y­sis demon­strates the scale of the hous­ing mar­ket and un­der­lines the im­por­tance of hous­ing to the economies of Lon­don and the UK as a whole, both as an as­set class and store of pri­vate wealth,” said Lawrence Bowles, res­i­den­tial re­search an­a­lyst at Sav­ills.

“As af­ford­abil­ity be­comes more stretched, younger house­holds are hav­ing to put off buy­ing their first home un­til later in life.”

Anal­y­sis: Lawrence Bowles

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