Buy To Let
UK homeowner wealth hits £4.4trn
The value of household dwellings rose 3.9% between 2011 and 2012 to reach £4.4trn. This was higher than the previous 2007 peak of £4.3trn and nearly four times the value 20 years previously. The increase was attributed to house prices and the effects of inflation.
Springtide Capital managing director Henry Knight said: “We are a nation of homeowners. It is a cultural thing more than anything.
“Coupled with the fact we are an island and we have fairly strict planning rules people seem to see it as a safe, solid asset.
“People often like that in comparison to equities where they can’t physically feel or understand it as much.”
Approximately 55% of all household wealth in bricks and mortar, making residential property the UK’s most valuable non-financial asset. Apart from a fall in 2008, household dwellings have steadily increased in value over the past decade.