Privately owned homes have increased in worth by £1.94trn since 2007 and more than half of the value boom has been in London and the South East, according to analysis by Halifax.
It means the average home is now worth £256,912, a huge rise of almost £70,000 from £187,310 a decade ago. At the same time, the yawning north-south divide has stretched wider.
Private property wealth in the south continues to grow but the share of market value in northern areas has fallen from 44% to 38%.
In London the average value is almost half a million pounds – three and a half times higher than in Northern Ireland where values are still the lowest regionally at a typical £141,681.
Mind the equity gap
There is also a regional gap in the level of housing equity with a higher balance in the South compared to northern areas.
In London equity is estimated at an average £360,193 per household followed by the South East at £279,590 per household.
In the North West equity stands at £134,273 per household and £137,354 per household in the West Midlands.
Housing wealth peaks as homeowners reach retirement age, with 40% of value held by households aged over 65.
Russell Galley, managing director at Halifax, said: “The value of housing stock has grown by close to £2trn in the past decade and with the equity rich regions of London and the South East largely responsible, it highlights a considerable regional imbalance in the distribution of housing wealth.
“Within the capital there is also a mix of fortunes.
“While more than a fifth of total property wealth is in London, lower levels of owner occupation reflect a major barrier to the property ladder with a far greater number of people renting where house prices are at their highest,” he added.
