Brits have £2tn in property
Wednesday, 6 February 2008 12:00 AM
New research from GE Home Lending finds Brits now hold some £2 trillion in property equity.
Up to a quarter of homes across the country are owned outright - accounting for around £1.377 trillion in property wealth, while a further 36 per cent of Brits are mortgage holders.
This second group can still claim some £582 billion worth of home equity to their names.
On average homeowners have £127,455 worth of equity on their property - allowing insulation against a short-term moderation in average prices.
Equity levels vary across the UK, however.
Up to a third of all bricks and mortar finance is held in London and the south-east, with the latter accounting for almost a fifth of all property equity, or some £377 billion.
Yet, given this significant discrepancy in prices between regions in Britain, more people in the north-west and Wales own their homes outright than in more affluent regions, such as the south-east.
"It is true that many homeowners have benefited from significant growth in house prices in recent years, but clearly the picture is complex," said Gerry Bell, head of mortgage marketing at GE Money Home Lending.
"While the majority of property equity is found in London and south-east, almost a third of homeowners actually own their homes outright in areas with significantly less equity - such as Wales and the north-west."
To increase the value of your home in what is a stagnant market at present, experts recommend improvements which increase energy efficiency, such as double glazing or insulation.
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