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TODAY'S OTHER NEWS

Housing equity hotspots - Britain’s most valuable property market revealed

A study from specialist property lending firm, Octane Capital, estimates that homeowners across England have accumulated over £2.547 trillion worth of equity within their outright owned homes and has found which areas of the property market are the most valuable based on this equity.

Octane Capital analysed the level of housing equity across the country for those who outright own their property based on current market values. 

Nationally

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It’s believed over 8.8m households across the country are owned outright and with the current value of these homes averaging £288,130, Octane Capital estimates that total housing equity in England sits at a whopping £2.547 trillion. 

By Region

The South East has the highest level of housing equity of all regions, with an estimated value of £560 billion in homes owned outright. 

London is in close second place, with the 948,681 homes owned outright in the capital equating to £493.3 billion in housing equity.

The East of England (£355 billion), South West (£322.4 billion) and North West (£238.1 billion) also rank within the top five regions home to the highest total value of housing equity. 

At Local Authority Level

At a local level, Buckinghamshire is home to the most valuable property market where total housing equity is concerned. With the average home valued at £447,579, Octane Capital estimates there is a total of £40.6 billion in housing equity across the 90,175 homes that are owned outright. 

In Cornwall, this total value of homes is estimated at £37 billion, with Kensington and Chelsea (£32.1 billion), Barnet (£29.6 billion) and Dorset (£29 billion) also being placed within the top five. 

Chief executive officer of Octane Capital, Jonathan Samuels, said: “London is certainly the nation’s most expensive pocket of the property market and nowhere more so than Kensington and Chelsea. However, in terms of the wealthiest area based on the value of homes owned outright, it’s the South East that leads the way and Buckinghamshire sits top of the table as the richest area in England, at least from a brick and mortar point of view. The total wealth within the housing market is huge and has only grown stronger as a result of the pandemic house price boom.”

“For well over a decade, the nation’s homebuyers have also benefitted from a far greater level of affordability when it comes to borrowing, with the base rate sat below one per cent. As a result, the journey to outright homeownership has no doubt taken them a shorter period of time and this has certainly contributed to current market wealth.”

Samuels concluded: “Of course, this research only scratches the surface where the true wealth of the market is concerned, as many homeowners are yet to fully own their home outright, but will still have accumulated a good deal of equity within it."

Table shows the number of homes owned outright, the current market value and the total estimated value of these homes

Location

Homes owned outright

Current average house price

Est total housing equity

South East

1,517,283

£369,093

£560,018,286,395

London

948,681

£519,934

£493,251,974,090

East of England

1,053,558

£336,937

£354,982,167,824

South West

1,044,925

£308,497

£322,356,039,534

North West

1,203,862

£197,797

£238,120,234,469

West Midlands

959,303

£211,663

£203,048,718,834

East Midlands

811,414

£229,277

£186,038,911,068

Yorkshire and The Humber

880,727

£191,036

£168,250,473,162

North East

418,612

£149,249

£62,477,506,571

England

8,838,365

£288,130

£2,546,594,014,403

       

Table shows the local authorities with the highest total estimated housing equity value

Location

Homes owned outright

Current average house price

Est total housing equity

Buckinghamshire

90,715

£447,579

£40,602,120,957

Cornwall

125,853

£294,022

£37,003,520,360

Kensington and Chelsea

24,387

£1,315,987

£32,092,985,846

Barnet

52,377

£564,441

£29,563,748,255

Dorset

85,630

£338,068

£28,948,764,510

Westminster

29,065

£978,912

£28,452,073,516

Birmingham

135,748

£208,712

£28,332,298,233

Wiltshire

86,352

£316,932

£27,367,718,126

Bromley

55,159

£481,569

£26,562,857,052

Leeds

110,493

£217,725

£24,057,107,352

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