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% Of Housing Stock That Is Equity?

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Does anyone have any stat for, or know the total £ value of UK housing stock, and what % of that stock is owned by individuals as opposed to banks/mortgage companies.

It would seem to me the % is rapidly falling as to the amount that individuals own, and that this sort of % might be a good indicator of whats going to happen to the market.

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Does anyone have any stat for, or know the total £ value of UK housing stock, and what % of that stock is owned by individuals as opposed to banks/mortgage companies.

It would seem to me the % is rapidly falling as to the amount that individuals own, and that this sort of % might be a good indicator of whats going to happen to the market.

Value of housing = 3300bn, mortgage liabilities = 877bn (as of end 04). I make that 27% debt / equity.

I think its an irrelevant statistic. Debt / equity peaked in mid 90s at 35% and shrunk to a low of 26% in 02 as house price increases outstripped mortgage stock growth. The key is the leverage of the marginal homeowner (i.e. the most indebted 10%) and that data doesnt exist as far as I am aware.

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Value of housing = 3300bn, mortgage liabilities = 877bn (as of end 04). I make that 27% debt / equity.

I think its an irrelevant statistic. Debt / equity peaked in mid 90s at 35% and shrunk to a low of 26% in 02 as house price increases outstripped mortgage stock growth. The key is the leverage of the marginal homeowner (i.e. the most indebted 10%) and that data doesnt exist as far as I am aware.

That is an excellent point. It is disguised by the bubble in prices.

If prices drop by 30%, the debt remains the same. The mortgaged portion rockets to 38%.

If houses prices fall by 46%, the banks would have claim over 50% of the countries housing stock.

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I guess this figure gives as an apocoliptic value. If property drops 74% in value everyone (and the banks) are stuffed...

Edited by moosetea

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Does anyone have any stat for, or know the total £ value of UK housing stock, and what % of that stock is owned by individuals as opposed to banks/mortgage companies.

It would seem to me the % is rapidly falling as to the amount that individuals own, and that this sort of % might be a good indicator of whats going to happen to the market.

If you just work on averages, and I agree this is rather a basic way to work out what the average percentage the banks own, but according to Nationwide the average house price last month was £157,310, and I can remember reading recently that the average mortgage is now in the region of £120,000. So on this basis, excluding people that own their houses outright, I'd say the banks own a rather large percentage of the housing stock.

On these two averages it leaves £37,000 equity on the average house. Not much really.

I don't mind being corrected on this, and please do, it's just the best conclusion I can come up with.

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If you just work on averages, and I agree this is rather a basic way to work out what the average percentage the banks own, but according to Nationwide the average house price last month was £157,310, and I can remember reading recently that the average mortgage is now in the region of £120,000.  So on this basis, excluding people that own their houses outright, I'd say the banks own a rather large percentage of the housing stock.

On these two averages it leaves £37,000 equity on the average house.  Not much really. 

I don't mind being corrected on this, and please do, it's just the best conclusion I can come up with.

And some people like to tell me that debt is a good thing! :lol:

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Value of housing = 3300bn, mortgage liabilities = 877bn (as of end 04). I make that 27% debt / equity.

I think its an irrelevant statistic. Debt / equity peaked in mid 90s at 35% and shrunk to a low of 26% in 02 as house price increases outstripped mortgage stock growth. The key is the leverage of the marginal homeowner (i.e. the most indebted 10%) and that data doesnt exist as far as I am aware.

I think the last debt/equity number I saw for the US was 47%. And their prices haven't started down yet. They're going to make housepricecrashUK look like a walk in the park :o .

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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