The majority of the value of UK housing stock is held as equity. In 2011 the total value of UK housing stock stood at £4.3 trillion. This compares to mortgage debt of £1.24 trillion, meaning equity accounts for 71% of the value of UK housing.
The biggest constraints are on the first time buyer (FTB). Research from the Council of Mortgage Lenders shows 64% of FTBs receive assistance from the equity bank of Mum and Dad. This figure has risen from 34% five years ago.
The numbers of these mortgaged FTBs are down by 51% over the same period, reflecting the fact that equity from the bank of mum and dad is not universally accessible.
As a consequence the shift from debt to equity has had the greatest impact in the private rented sector. Not only has it increased the demand for rented accommodation among occupiers but more equity has been directed at the residential investment sector among owners. The result is that the value of private rented housing stock in the UK has risen by 42% to just over £900 billion in five years.
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