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

‘Wealth of the nation found in bricks and mortar’

0
Written by:
04/04/2007

More than half the personal wealth of the UK is tied up in bricks and mortar, according to UK insurer Prudential.

A decade ago property accounted for 40% of people’s wealth, and steeply rising house prices are credited for the growth in the intervening years.

At the same time as property has been increasing in importance, pensions, shares, life assurance policies and savings are playing a less significant role, with a volatile stock market blamed for much of the dilution of impact of these products.

Ali Crossley, director of Lifetime Mortgage at Prudential, said: “It is interesting to see how important property has become in constituting our main source of financial wealth.

“House prices have risen significantly over the last 20 years and this is one of the reasons why we have seen such a shift in wealth components.”

But the increased proportion of wealth found in property worries some economists, who reckon too many people are financially over-reliant on it.

“In recent years, many people have borrowed against the increased value of their home to fund their spending, pay off other debts or to fund home improvements,” said economist Stephen Windsor.

“Another rise in interest rates, coupled to the massive level of personal debt we have now, could precipitate a crisis involving people’s homes. And we must never forget that the property market is, at root, people’s homes.”

Related Posts

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

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.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

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...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Low rates give rise to gripes and ‘annoyance’

Low savings rates and low interest payable on current accounts are the two aspects of finance that annoy bank customers the most,...

Close