The value of England’s housing market has soared by £1.6tn because of the pandemic property boom, according to new research.
The research by estate agency Yopa is based on the number and value of dwellings which shows that the average house price has risen by 25% from £248,097 in December 2019 to £390,602 today.
And the number of homes has also increased by 1.9%, or 459,191, in the same period.
This means that the total estimated value of the property market in England has jumped from £6.1tn in 2019 to £7.7tn today, an increase of 27%.
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‘Doom and gloom surrounding the property market’
Yopa’s chief executive, Verona Frankish, said: “With all the current doom and gloom surrounding the property market, it’s quite easy to forget that we’ve just witnessed one of the most sustained periods of house price growth in living memory.
“So, while higher mortgage rates and buyer uncertainty may have dampened the current rate of house price growth, this reduction is just a drop in the ocean compared to the meteoric increases seen since the start of the pandemic property market boom.”
She added: “To think that the bricks and mortar market across England is estimated to be worth £1.6tn more compared to just a few years ago is quite incredible and it really does demonstrate the strength of the property market when viewed on a long-term basis.”
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The South East has seen the largest jump
The study also found that the South East has seen the largest jump in the total value of the region’s property market, increasing by £311bn or 28% since the start of the pandemic.
London, despite having lower house price growth than other regions, has added £251.3bn or 19% to the value of its property market.
The North East has seen the smallest increase in total market value, but still added £45bn or 24% to the value of its bricks and mortar market.
At the local authority level, Cornwall ranks top, with £24.3bn or 51% added to the value of the Cornish property market because of the pandemic.
Other areas that have seen large increases in the value of their property markets include Buckinghamshire (+£23.4bn or 40%), Birmingham (+£22.2bn or 35%), Leeds (+£21.4bn or 38%) and North Yorkshire (+£20.1bn or 36%).
Source: Property 118