New data has revealed that London is now home to over a third of Britain’s gross property value, with the total value of homes in the capital reaching £1.5 trillion.
The research from specialist London estate agents Stirling Ackroyd shows this as comparable to the value of every home in the rest of England, which equalled £2.24 trillion as of June 2014.
Furthermore, within three years time London homes are projected to be valued at a total of £2.1 trillion, obliterating the gap between the entire rest of the country, and accounting for over 40 per cent of all residential property value within the United Kingdom.
Just over 25 years ago in 1987, London homes were worth a total of just £263 billion, just over a quarter (27 per cent) of all property wealth.
Today however, property in just three of London’s East End boroughs is worth significantly more than all the homes in the entirety of Wales. Tower Hamlets, Southwark and Hackney together contain homes worth a total value of £170 billion, 5% more than Wales’ £162 billion worth of residential real estate.
The findings were released shortly after the arrival of Stirling Ackroyd’s Heritage Report, which informs upon how the relative value of property in eastern boroughs of England’s capital has managed to outpace the more traditional strongholds of property wealth in West London.
Andrew Bridges, Managing Director of Stirling Ackroyd, had this to say on the subject:
“London is a growing asset for the UK, in a multitude of ways. From a City in decline with a falling population just thirty years ago, our capital has rebuilt its place at the heart of the financial, cultural and technological worlds.
“This is both a success story and a call to action. London is enormously valuable, but it is also a prime field of opportunity for developers. We expect a growing wave of new homes in the capital in coming years and under the right conditions, development could help to ease supply. This progress will add hugely to London’s value and in turn it’s dominance in the British property market.”
Robin Hancock, an experienced UK property expert, commented that this is not a good sign for the UK.
“Whilst it is good that London’s high value will be attracting investors from all over the globe, it is not a perfect scenario considering the disparity in prices across the UK.
“When one city is nearly equal in property worth to an entire country, it shows that something is clearly not right. It also means that it will be increasingly hard for someone living outside the capital to make the move into London, due to the fee they receive from selling their property outside the capital being much less than the cost of an equivalent property within the city. Whilst property prices in the North-West can be worth as little as 50 per cent of London properties, it is a disservice to people who wish to move to the capital but cannot afford it as their homes are worth too little compared to ones in London.”