Official figures from the Office for National Statistics (ONS) have revealed that rising land values contributed significantly to the overall net worth of the UK in 2017.
Last year, the UK’s net worth was estimated at
trillion, rising by billion between 2016 and 2017, which calculates at an average of per person.
This represents a growth of 5.1%, and whilst well below the 9.2% recorded between 2015 and 2016 it remains in line with the long-term average of 5.2% growth between 2009 and 2017.
Non-financial assets were the key driving force behind the rise in the UK’s net worth, with the largest contribution coming from a bn increase in land values since 2016.
Land in the household sector rose in value by bn since 2016 to tn in 2017, representing 76% of the total value of UK land compared with 61% in 1995.
The ONS notes that the value of land in the UK accounted for a higher proportion (51%) of its net worth in 2016 than any other G7 country; more than France’s (41%) and almost double Germany’s (26%).
Rising demand from housebuilders has led to strong annual growth in greenfield land values in the Midlands, as values across the UK increased by 0.8% in Q2 2018 according to Savills.