Friday, Jun 13, 2008
GB properties loss in value is over £1 billion per day during last 9 months
mortgageintroducer: GB properties total £5.8 trillion
New figures reveal that the total combined value of all residential properties in Great Britain currently stands at over £5.8 trillion (£5,835,563,534,903). This figure is down, however, by almost £300 billion (£288,419,620,195) since the housing market peak in September last year, when the combined value of all homes topped £6.1 trillion, equating to a value loss of over £1 billion per day over the last 9 months.
Posted by jack c @ 11:28 AM (1553 views) Add Comment
14 Comments
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1. converted lurker said...
small wonder that a 30% drop in house values gives the money markets the shudders. Fair estimate that out of that 6 tril of property value 4 tril of it is mortgaged.
2. mr_smith said...
yeah but its not really 'worth' all that money as its you tried to sell them all at once the price would drop. like lurker says its the debt against it that is the problem
3. jack c said...
Converted L - if your estimate that out of that 6 tril of property value 4 tril is mortgaged proves reasonably accurate we could potentially see figures in the future (say 18mths - 2 yrs time) where the combined value of all residential properies in GB is worth less than the mortgage debt ! Many people are unaware as to the extent that the GB public have loaded unsecured borrowings and the holiday and the car etc.. onto the mortgage - frightening figures when you really get into them.
4. uncle tom said...
We've all encountered people (in the past at least) who have maintained that house prices won't crash 'because the govt. won't let it happen'
Compare numbers like this, with those of the government's finances, and the naivety of such claims shines forth..
5. crash n burn said...
Another £3 trillion to go please.
6. mark wadsworth said...
That £6.1 trillion figure is miles out.
24 million homes (including council homes) x no more than £200,000 (depending on whom you believe) last summer = £4.8 trillion.
7. icarus said...
How do they make this valuation anyway in a sliding market with a stand-off between buyers and sellers? Total value is meaningless anyway for the reason given by mr_smith - houses sell at the margin, not en mass.
8. mr_smith said...
mark - I think the average house price excludes lots of the top end of the market. al the mansions etc.... maybe not but that might explain some of the discrepancy
9. hpwatcher said...
''GB properties total £5.8 trillion''
total crap figure.
10. Young_mark said...
It would help the debate if people got their facts right. According to PriceWaterhouseCoopers total indebtedness of UK consumers stood at £1.3 trillion in June 2007. Of this 84% or a £1.09 trillion is secured lending i.e. mortgages. Total assets stand at over £6 trillion, the bulk of which is property. There is not the slightest possibility of the UK as a whole ending in negative equity.
Source: PWC. 2007. "Precious Plastic 2008. Consumer credit in the UK".
11. Doom And Gloom said...
Everything you read seems to be doom and gloom. House prices collapsing - everything else going up in price
Well I had a result recently. I sold my house and saved myself 8 thousand pounds. How?
I used www.propertyHat.com. Totally free!! I also put in what I want to buy and several people have contacted me. It's the only good news in recent times
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