You are here: Home - Saving & Banking - News -

Household wealth soars by record 19%

0
Written by: Joanna Faith
15/05/2015
The total wealth held by UK household has risen by 19 per cent to £9.1trn, the largest increase since records began in 2001, according to new research issued by Lloyds Bank’s Private Banking division.

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.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Only a fifth of retirees plan to use Pension Wise

Only one in five over-55s intend to use the government’s free advice services to aid their retirement planning, according to research...

Close