Value of housing stock reaches record

The value of the private UK housing stock reached a record level in 2007, according to the latest figures.

The total value was recorded by Halifax as £4 trillion, an increase of nine per cent or £320 billion.

Housing equity, the value housing assets minus the total of outstanding mortgage debt, was also up, having increased by almost £2 trillion in the last decade.

"UK homeowners have collectively accumulated an extra £2 trillion of equity in their homes over the past decade as property prices have risen," said Halifax chief economist Martin Ellis.

"This has significantly strengthened the household balance sheet. Mortgage debt accounts for only 30 per cent of the value of the UK's £4 trillion worth of housing assets," he added.

The survey also revealed that the north-south divide has narrowed in the last five years.

In 2002, the south accounted for 61 per cent of housing stock, while the north accounted for just 39 per cent.

However, in 2007, the south accounted for 55 per cent and the north for 45 per cent.

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