Demand in the property market pushed the value of Britain's total housing stock to a record £3.8 trillion in 2006, 12 per cent higher than the previous year, according to new statistics from the Halifax.
The value of private homes rose by £410 billion over the year, the survey from Britain's largest mortgage lender shows.
One third of the value of total housing wealth, £1.3 trillion in total, was sited in cities.
Housing equity totalled 3.5 times the value of outstanding mortgage debt, worth £1.1 trillion, which is good news for customers with mortgage debt.
"The UK's household balance sheet is in good shape," Halifax economist Tim Crawford commented.
Ten years ago, the total value of housing assets was only 2.9 times the level of housing debt.
The value of residential housing has soared by 78 per cent over the past five years, while inflation in retail prices has amounted to only 14 per cent.For more information about UK property, click here.
© Adfero Ltd