According to Savills, the value of homes in the UK in 2025 was 1.5% higher than in 2024 and over 3.8 times the market capitalisation of the FTSE 100 at the end of the year.
The analysis combined the value of homes owned outright, those with a mortgage, social housing and the private rented sector.
Savills found that the pace of growth slowed last year, with values rising by £136bn, compared to £268bn in 2024.
In the last three years, the value of UK housing has risen by £336bn, notably lower than the £1.71trn growth recorded between 2019 and 2022.
Lucian Cook, head of residential research at Savills, said: “Although the total value of UK housing has continued to edge up over the past year, the capital appreciation of £336bn since the end of 2022 is the lowest we have seen for a three-year period since 2013.
Click here to view our Sponsored Content Hub
“That partly reflects the initial pressure put on prices as mortgage costs rose over the course of 2023. But equally the housing market has been slow to respond to recent cuts in bank base rate. This, combined with an absence of price growth across London and the South East, where values are highest, and falling levels of housebuilding [have] kept a lid on the aggregate number.”
Regional values and changes in £bn
|
|
Total value in 2025 |
Three-year change |
10-year change |
|
London |
£2,041,323,344,609 |
£26,399,575,336 |
£489,944,566,941 |
|
South East |
£1,701,948,553,427 |
£39,345,580,105 |
£513,263,418,214 |
|
East of England |
£989,752,809,271 |
£6,260,713,429 |
£310,217,703,752 |
|
South West |
£843,601,628,261 |
£15,134,257,776 |
£286,965,065,273 |
|
North West |
£732,531,875,912 |
£63,329,745,195 |
£312,928,314,565 |
|
West Midlands |
£625,631,685,508 |
£24,572,459,494 |
£242,557,935,704 |
|
Scotland |
£539,709,081,138 |
£37,331,506,837 |
£202,667,554,313 |
|
East Midlands |
£521,963,174,530 |
£23,620,467,159 |
£206,598,210,757 |
|
Yorkshire and the Humber |
£503,473,342,502 |
£37,722,815,656 |
£195,978,838,476 |
|
Wales |
£309,449,531,936 |
£13,605,620,576 |
£126,438,977,633 |
|
North East |
£195,604,143,789 |
£18,957,290,589 |
£69,369,867,945 |
|
Northern Ireland |
£172,468,500,727 |
£29,643,483,920 |
£81,930,006,513 |
|
United Kingdom |
£9,177,457,671,611 |
£335,923,516,073 |
£3,038,860,460,087 |
Rapidly rising values in the North of England
Savills found that despite accounting for just 27% of the overall value of UK homes, property in the North of England and the devolved nations contributed 60% of all growth since 2022.
The strongest growth has been seen in the North West, where values have shot up by £63bn since 2022, around 2.4 times the growth of the £26bn seen in London and £39bn in the South East.
Dan Hill, senior research analyst at Savills, said: “Regional performance continues to reflect the fact, from a geographical perspective, we are well into the second half of the housing market cycle.
“There remains more capacity for growth in more affordable markets of the North, Scotland, and Wales, while in London and the South that continues to be more limited.”
Hill added: “However, housing wealth remains heavily concentrated in London and the South East. These regions command a disproportionately large share of total UK housing value relative to their share of the housing stock, an imbalance that continues to define the UK housing market.”
Housing wealth still concentrated in Central London
Although the value of homes in London’s most expensive boroughs has dropped by 12% over the last three years, properties in Westminster and Kensington and Chelsea amount to £209bn, surpassing the entire value of homes in the North East, valued at £196bn.
