Britain's house price values outweigh personal debt by factor of five, preventing property crash.
A new study has revealed that the total value of Britain's property currently stands at 5 500 000 000 000 pounds, with over 1 300 000 000 000 pounds of that in London alone.
London's property value is more than 10 times that of its nearest competitor, Birmingham, whose total property stands at 143 700 000 000 pounds. It is also 20 times that of Glasgow, where total property value amounts to 61 300 000 000 pounds.
One analysis of the new figures means that the UK has a loan to value ratio of just 20%, when the equity value of all UK housing is compared to Britain's mortgage-filled 1 200 000 000 000 personal debt mountain.
Stephen Ludlow, Chairman of Ludlowthompson, comments: "The British property market is extremely well insulated from the kinds of property crash that have occurred in other countries recently, notably Spain. The UK personal debt mountain is often pointed to by commentators as of significant concern, but this research shows just how much equity underlies that debt. Very few banks would turn down a homebuyer who only took out a mortgage worth 20% of the value of the property they were buying which can only be good news for the UK's public finances."
Source: http://www.ludlowthompson.com/property_news/UKs_housing_market_shows_resilience/article.htm?id=1148