The UK’s worth grew by the largest amount on record to reach £9.8tn at the end of last year, boosted by land value, which has grown “more than fivefold” since 1995, according to the office of national statistics.
Combining the UK’s total assets, the Office for National Statistics (ONS) found that the UK’s value increased by 8.9pc or £803bn between 2015 and 2016. The country’s net worth has risen steadily since 2012, following a course in line with pre-financial crisis conditions. Land was found to be the UK’s single most valuable asset, making up more than half of the UK’s total net worth, according to the annual ONS report, an estimate of the market value of UK assets is known as the national balance sheet.
Non-financial assets increased by £477bn in 2016, with £280bn of that growth coming from rising land value. Land is worth £5.0tn, equivalent to 51pc of the total value of the UK.
However, the growth of land value slowed last year to a 5.9pc increase, compared with rises of 15pc in 2014 and 10pc in 2015.
The ONS noted that land values remain highly dependent on house prices. In 2008 land lost 23pc of its value, some 23pc, as the housing market tumbled. For several years ahead of the crash, land as an asset grew by 18.3pc in value.
The Government was the least valuable sector in the UK, with a value of negative £845bn. This was driven by central government’s massive debt. It was £1.2tn in the red, contrasting with local government which was £356bn in the black.
Since 1995 the value of land has increased more than fivefold, making it our most valuable asset. At £5tn, it accounts for just over half of the total net worth of the UK at end-2016.