UK IMMIGRATION NEWS

Biggest Property Boom in UK History

Tuesday, 24 July 2007

The Office of National Statistics has released a new study on Britain's wealth: 60% of the UK's overall financial value of about £6.5 trillion is tied up in property.

The value of land in the UK has increased by £326 billion, representing the biggest increase in property value in UK history.

The average cost of a home in the UK has more than doubled in the last 10 years from under £100,000 to about £200,000. The UK's booming economy, increased immigration, relatively inexpensive mortgages, and the UK's increasing prominence as a world financial capital have all contributed to the increase in property value.

However, it is speculation, not the actual pressures on housing stocks that represents the biggest factor in the double-digit increases in housing costs.

Much of the increase in property value has taken place in London, which saw an increase of 21.7% in property value over the past year. Although not always posting double-digit annual growth rates, almost the entire UK has seen its property value increase markedly over the past decade.