The total value of the UK’s housing stock has reached £9.18 trillion, representing more than 3.8 times the market capitalisation of the FTSE 100 at year-end, according to research from Savills.
The analysis, which includes homes owned outright and with mortgages alongside social housing and the private rented sector, shows that overall housing value increased by £136 billion during 2024. This represents a significant slowdown from the previous year’s £268 billion increase.
Three-year growth slowest since 2013
Lucian Cook, head of residential research at Savills, noted that the total capital appreciation of £336 billion since the end of 2022 marks the lowest three-year growth period since 2013. “That partly reflects the initial pressure put on prices as mortgage costs rose over the course of 2023,” Cook said. “But equally the housing market has been slow to respond to recent cuts in bank base rate.”
The absence of price growth across London and the South East, where property values are highest, combined with falling levels of house building, has constrained aggregate growth figures.
Regional disparities widen
The housing market across the North of England and the devolved nations has delivered stronger growth than the South in recent years, despite representing a smaller share of overall property value. These areas account for just 27% of the total value of UK housing stock, yet have driven 60% of all market growth since 2022.
The North West has been the strongest performer, with the total value of homes rising by £63 billion over the period—approximately 2.4 times the £26 billion increase recorded in London and £24 billion more than the £39 billion added in the South East.
Dan Hill, senior research analyst at Savills, attributed regional performance to 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 said.
Central London values decline
Home values in central London’s most expensive boroughs have declined over the past three years. Westminster and Kensington & Chelsea have seen a combined drop of 12%, reflecting shifts in the tax and regulatory landscape.
Despite this decline, the total housing stock in these two boroughs remains valued at £209 billion—still higher than the entire North East of England, which has grown by 11% over the same period to reach £196 billion in value.
The research highlights the continued concentration of housing wealth in London and the South East, which command a disproportionately large share of total UK housing value relative to their share of the housing stock.