Value of privately-owned homes grows to over £5.5 trillion for first time

The total value of the UK's privately-owned homes has grown to over £5.5 trillion for the first time, according to estimates.

Halifax calculated that the total value of privately-owned housing stock has risen by £1.9 trillion since 2006 to reach an estimated £5.6 trillion.

The 51% increase in a decade is faster than the retail price index measure of inflation, which has risen by 33% in the same period, Halifax said.

The average value per household is £241,682, up from £173,837 in 2006.

The increase has been driven by a surge in house prices and the rise in the number of privately-owned homes, Halifax said.

Overall housing equity held by UK households is in a healthy state, with total housing assets worth over £4.2 trillion more than the value of mortgage debt. Housing equity has grown by £1.6 trillion since 2006. For almost one in three home owners - who own their home with no outstanding mortgage debt - their financial position is even stronger.

Martin Ellis, housing economist at Halifax