House prices in the UK break £9 trillion mark for the first time ever

The total value of house prices in the UK has for the first time surpassed £9 trillion, according to national real estate agents Savills.

Decades of rising house prices, driven by population growth, limited housing supply, and strong demand have fueled this increase. Even during periods of economic uncertainty, the market has remained resilient, with regional growth now playing a bigger role in pushing values higher.

Over the past two years, property values in the North West, Scotland, and Yorkshire & the Humber have grown faster than in London, reflecting a shift in affordability and buyer demand.

For those buying a house, understanding regional trends and future price movements will be key to making informed decisions.

House prices continue its relentless climb

The total value of UK homes increased by £346 billion (+3.9%) in 2024, pushing the country’s housing stock beyond £9 trillion for the first time, according to research from Savills.

This follows more than a decade of near-continuous price growth, even as affordability pressures have weighed on buyers.

“The value of Britain’s housing stock reached a new high as prices continued to rise in many areas. With interest rates expected to fall, we anticipate more buyers returning to the market, particularly those who postponed moving due to higher mortgage costs,” says Lucian Cook, head of residential research at Savills.

While the overall market keeps growing, the distribution of that growth is shifting, with regional markets outperforming London in percentage terms.

The North and Scotland are catching up

Although London and the South East still hold over 40% of total UK housing value, recent growth has been strongest in northern regions:

• The North West, Scotland, and Yorkshire & the Humber each added more than £37 billion to their housing stock since 2022.
• London, despite its high values, saw a more modest increase of £31 billion.
• Over the past decade, London and the South East gained over £1.2 trillion in value, but their rate of growth has slowed compared to other regions.

Dan Hill, research analyst at Savills, attributes this to differences in affordability and borrowing patterns: “Regional markets that rely less on mortgage borrowing have more capacity for price growth, and that’s reflected in the recent shifts we’re seeing. While London and the South East still dominate in total value, the North and Scotland are experiencing stronger percentage gains.”

Despite this trend, housing wealth remains heavily concentrated in London and the South East, with these regions accounting for a disproportionate share of the UK’s property market value.

Who’s benefiting most from rising house prices?

A growing divide is emerging between those who own their homes outright and those still paying off mortgages.

Homes owned outright (mortgage-free) have seen the largest value increases, rising £1.36 trillion (+66%) since 2014.

Mortgaged properties, meanwhile, have grown by £1.07 trillion (+55%) over the same period. “There’s a widening gap between outright homeowners and those with mortgages, as affordability pressures have made it harder for new buyers to build equity,” says Cook.

Meanwhile, London’s private rental sector (PRS) remains the most valuable in the UK, with a total worth of £617 billion - more than all the housing stock in Scotland combined.

Mortgage rate rises and first-time buyer challenges

While house prices continue to rise, high mortgage rates and stamp duty costs are set to increase, particularly for first-time buyers, affordability is now more challenging than ever.

Although mortgage rates have started to come down, they remain significantly higher than the record lows seen in recent years.

Jonathan Samuels, CEO of property finance experts Octane Capital, highlighted the impact of rising borrowing costs: “The latest figures show that the property market has performed strongly over the last year, but with inflation rearing its head again, homebuyers and movers could be waiting a little longer before the Bank of England cuts rates again.”

With first-time buyers facing affordability struggles, there have been growing calls for stamp duty holiday to help ease the financial burden. Many industry experts believe further government intervention could be needed to support those trying to get onto the property ladder.

What’s next for buyers and sellers?

With interest rates expected to fall, more buyers may enter the market in 2025, particularly first-time buyers and second-steppers who have delayed moves.

However, affordability remains a major challenge, especially in London and the South East.

The shift in regional growth suggests that the North and Scotland will continue to gain ground, even as London remains the most valuable market. For buyers and investors, keeping an eye on regional price trends will be crucial in the months ahead.

With UK house prices continuing their steady climb, the market is evolving. While London and the South East remain the most valuable regions, the North and Scotland are seeing faster growth, reflecting shifting affordability and demand.

As interest rates are expected to fall, more buyers may re-enter the market, driving further house price increases in 2025. However, regional differences will remain key - those looking to buy or invest should track how house prices are changing across different parts of the UK.

If you are planning on buying a house you may want to see our house viewing checklist and our guide on building surveys. Also, if you are looking to sell, you can use our 'How much is my house worth?' guide to make sure you get a fair price.