5 Feb

UK property equity almost £2 trillion

UK property equity almost £2 trillion

UK homeowners have built up close to £2 trillion in equity in their properties over the last decade, new figures show.

According to a study conducted by GE Money Home Lending, the amount of property equity currently held by Britons stands at £1.959 trillion.

This equates to £127,455 of mortgage-free wealth for each property.
The study’s findings will be welcomed by homeowners who have experienced a slowing in house price inflation over the last few months, Gerry Bell, head of mortgage lending at GE, said.

Mr Bell commented: "Whatever happens to the property market in the short-term, we have had a prolonged period of rising prices which have, importantly, helped many homeowners to build up equity and a reassuring cushion against any downturn.

"However, whilst consumers should take some reassurance from the equity that they currently hold in their homes, they also need to ensure that they are not complacent and continue to make prudent financial decisions - particularly in an environment of economic slowdown which could potentially see house prices falling."

The lion’s share of the property equity is held by homeowners in London and the South East.

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