Property owners in London have seen substantial property price rises during pandemic
(Picture: Daniel Lynch)A third of homeowners have made more than £50,000 on their property during the duration of the coronavirus pandemic, according to online property platform Zoopla.
The value of UK homes combined has also passed the £10 trillion mark for the first time, based on the value of Britain’s 29.5 million homes adding nearly a 15% increase in value of £1.3 trillion during the pandemic.
The average UK home has risen by £48 per day over that period with 9.4 million homes hitting or surpassing the £50,000 benchmark.
However, Londoners although watching skyrocketing increases in their bricks and mortar, have not benefitted as much in relative terms as the impetus for gains has shifted northwards in Britain.
With the average UK household income £34,100, some properties are making more than their owners salaries mirroring the early 2000s dinner party chatter prior to the late noughties house price crash.
Richard Donnell, executive director at Zoopla, said: “The boom in demand for homes created by the pandemic has pushed the value of homes higher. The gains over the last year are the largest since 2006 but they are far from uniform
“An exodus of older workers from the labour market over the pandemic, together with more working from home, is driving more households to look further afield for their next home to get greater value for money.
“Not everyone has seen home values increase. Affordability is holding back prices in London and southern England and our analysis reveals the centre of gravity of the housing market is shifting northwards.”
Throughout the UK, Wales has seen the greatest increase in value, up 22%, followed by the North West and South West - both with gains of 20%.
In London however, the increase is just 7%, less than half the national average as affordability factors, the impact of the pandemic and working from home dented the demand for homes, especially in high value inner areas of London and also the market for apartments as homeowners looked for affordable outdoor space.
The greatest value of homes are located in London and the South East which account for 23.5% the of all the value of UK homes, but weaker growth means the share of housing wealth has fallen from 26% pre-pandemic.
Zoopla’s Value of Housing report takes into account the change in value of every home in the UK. Using Zoopla’s valuation estimate, it monitors the rise and fall of prices.
