The total value of London’s 3.8 million homes has reached an estimated £2.64 trillion according to new research from Zoopla, highlighting the vast scale of the capital’s property market despite a decade of subdued price growth.
The analysis shows that London’s housing stock accounts for 24% of the UK’s total residential market value, estimated at £10.8 trillion.
While average house prices in the capital have risen just 10% over the past ten years – compared with 41% across the UK – London remains by far the country’s most valuable regional market.
At a city level, the capital’s combined housing value exceeds the market capitalisation of all FTSE 100 companies combined, which currently stands at around £2.5 trillion.
TOP OF THE TABLE
The City of Westminster tops the table as London’s most valuable borough, with £175.1 billion of housing value, representing 6.7% of the capital’s total.
Together with Kensington and Chelsea, Wandsworth, Camden and Barnet, the five most valuable boroughs hold more than £700 billion – over a fifth of London’s housing wealth.
However, value across outer London is increasingly driven by the volume of homes rather than high prices.
Boroughs such as Barnet (£117.6bn), Ealing (£92bn) and Bromley (£90bn) together account for nearly half the capital’s total housing value.
By contrast, more affordable boroughs including Croydon, Lewisham and Newham contribute significantly to London’s housing wealth due to their density and housing stock.
MOST VALUABLE MARKET
Richard Donnell (main picture, inset), Executive Director at Zoopla, says: “London’s housing market remains the most valuable market in the UK, but higher home values have created affordability problems that have held back house price inflation over the last decade compared to the UK as a whole.
“Earnings are rising faster than house prices which is helping to reset affordability and opening up more opportunities for homeowners to move home while broadly static home prices in inner London are presenting increasing opportunities for savvy home buyers.”
Despite sluggish growth, Zoopla said the capital’s housing market continues to represent a “cornerstone of national wealth” and a “barometer of economic confidence” in the UK.
