Matthew Neville

Nation’s homeowners sitting on £2.6tn in equity as ownership increases 17 per cent

As part of Bdaily’s latest feature week, The Property Market, we look to market analysis by mortgage broker Henry Dannell which has revealed that the level of equity built up in the property market across England currently sits at over £2.6tn, with a 17 per cent increase in the level of total homeownership over the last five years.

Henry Dannell analysed data from the Office for National Statistics looking at the level of homes that are owned outright across the property market, how this has changed over the last five years and what the total equity contained in these homes equates to in the current market.

The latest figures show that almost 8.9 million of us own our own homes across England, up 17 per cent in five years. The South East is home to the highest number of homes owned outright at over 1.5 million, with this figure also exceeding the 1 million mark in the North West, East of England and South West.

However, it’s London that has seen the largest increase in just five years, up 19 per cent, with Tower Hamlets (41 per cent), Newham (33 per cent) and Greenwich (30 per cent) home to some of the highest increases in outright homeownership rates in the country.

Analysing the level of homes owned outright in relation to current property market values, Henry Dannell found that there is £2.615tn currently built up in equity across the market.

While London may be home to the highest average property values, it ranks second where the total equity of outright ownership is concerned, coming in just shy of £500bn. It is, in fact, the South East that is home to the highest level of equity held in homes that are owned outright, totalling a £580m.

At local authority level, Buckinghamshire ranks as the most valuable market for outright owned equity, totalling a notable £42.1bn. Cornwall also ranks high at £38.2bn, with Kensington and Chelsea placing third (£34bn).

Other areas to make the top 10 include Barnet (£30.4bn), Birmingham (£29.6bn), Dorset (29.5bn), Westminster (£29.2bn), Wiltshire (£27.9bn), Bromley (£27bn) and Leeds (£25bn).

Director of Henry Dannell, Geoff Garrett, commented: “A decade of mortgage affordability has helped fast track many homebuyers along the path to outright ownership and, as a result, many are now sitting on a substantial level of equity within their home.

“At the same time, record house price growth has pushed the total market value of this equity to astonishing levels, equating to trillions of pounds for those homes no longer backed by a mortgage alone.

“So it’s hardly surprising that there has been a significant increase in the number of homeowners opting to release some of this accumulated wealth in order to supplement their lifestyle or to help younger generations climb the ladder.”

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