Household wealth soars by record 19%
The study indicates that in the past decade, wealth held by households has grown by £3.9trn (or 75 per cent), the equivalent of £126,572 per household. This record-breaking growth is attributable to the rise in property prices and the value of financial assets during the last year.
As the average house price rose by 9 per cent during the year, housing wealth contributed an estimated £452bn to the overall increase in wealth; accounting for approximately a third of the rise overall.
The total value of financial assets (such bank and building society deposits, government bonds, stocks and shares and pensions) held by households has increased by close to £1trn.
Household wealth has grown faster than consumer prices increases, with the retail price index up by 31 per cent over the past ten years; it has also outpaced growth in household disposable income, which rose by 42 per cent in the same period.
“Since 2004 substantial growth in the value of the housing stock and financial assets has boosted net household wealth by close to £4trn,” said Markus Stadlmann, chief investment officer of Lloyds Bank Private Banking.
“A booming housing market up to 2007 coupled with the rising value of households’ financial assets held and a growing number of older households are the key drivers.”