Mortgage debt less than a third of UK housing value

Despite concerns over high mortgage repayments, a new survey has revealed that mortgage debt is not increasing as fast as the value of the UK's housing assets.

Figures published by Halifax indicated that the total value of UK housing stock has more than tripled over the past decade, reaching a record level of £4 trillion last year.

At the same time, the researchers discovered that the total value of housing assets has risen at a significantly higher rate than increasing mortgage balances, with the former growing by £318 billion in 2007, compared to a £120 billion rise in mortgage debt.

"UK home owners have collectively accumulated an extra £2 trillion of equity in their homes over the past decade as property prices have risen," said Martin Ellis, chief economist at the lender.

"This has significantly strengthened the household balance sheet," he added. "Mortgage debt accounts for only 30 per cent of the value of the UK's £4trillion worth of housing assets."

Meanwhile, figures published last week by the Council of Mortgage Lenders revealed that, despite tighter constraints on mortgage funding, lending levels help up reasonably well toward the end of last year.

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