London makes up 35% of Britain’s property wealth in 2014 and is set to reach 40% of property value by 2017, according to new research.
Homes in Hackney, Tower Hamlets and Southwark are worth more than all the homes in Wales, the study from specialist London estate agents Stirling Ackroyd has found.
Residential property in the capital is now worth a total of over £1.5 trillion compared to £2.24 trillion for the rest of England, and a £4.31 trillion price tag for all of Britain’s homes
Moreover, by 2017 London homes are expected to be worth a total of £2.1 trillion, closing the gap with the rest of England put together, and making up 40% of all residential property value in Britain.
By contrast, in 1987 London homes were worth a total of just £273 billion, or 27% of all property wealth.
A breakdown of the figures shows that property in just three East End boroughs is worth more than all the homes in Wales. Hackney, Tower Hamlets and Southwark together have homes worth £170 billion, 5% more than Wales’ £162 billion in residential property.
Indeed, Stirling Ackroyd’s Heritage Report details how the value of property in eastern boroughs of the capital has outpaced more traditional stores of wealth in West London.
‘London is a growing asset for the UK, in a multitude of ways. From a city in decline with a falling population just 30 years ago, our capital has rebuilt its place at the heart of the financial, cultural and technological worlds,’ said Andrew Bridges, managing director of Stirling Ackroyd.
‘This is both a success story and a call to action. London is enormously valuable, but it is also a prime field of opportunity for developers. We expect a growing wave of new homes in the capital in coming years and under the right conditions, development could help to ease supply. This progress will add hugely to London’s value and in turn its dominance in the British property market,’ he added.