Housing Sends Britain’s Wealth Soaring

Britain is valued at more than £6000 billion, thanks to a healthy housing market, according to new government statistics. A report by the Office for National Statistics shows the UK?s net worth increased by £119 billion last year, a figure largely driven by housing value which increased by 4%. ?Britain is a very property conscious country,? explained Jonathan Hewlett, Head of Savills London. ?Commercial investors and residential developers will have done well out of the current boom.? The report, Capital Stocks, Capital Consumption and Non-financial Balance Sheets 2006, released yesterday, show the market value of non financial assets in the UK and thus measure the UK?s wealth. By adding the country?s financial assets to the value of the non financial assets the net worth is revealed - an estimated £6,012 in 2006. But according to the balance sheets, the most valuable asset continues to be housing with a total value of £3,575 billion ? up 4% since the previous year and equivalent to 59% of the nation?s wealth. According to Mr Hewlett, the housing market is set to remain as Britain?s greatest asset over the coming years. ?London and the home counties are recognised globally so the trend will continue over the next few years,? he explained. However Mr Hewlett believes the boom will become less ?hectic?: ?There is still poor supply and high demand but people are anxious that the market is getting over-heated,? he said.

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