The average household has become GBP86,000 (US$131,003) richer over the last decade and the total net household wealth in the UK has soared past the GBP7 trillion mark for the first time, new research from the Office of National Statistics has shown.
The figures from the Office of National Statistics represent a rise in wealth of 62% versus inflation of 29% since 2002.
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Household wealth has risen by GBP478 billion, or 7.3%, since the financial crisis in 2008. The latest figures from the Office of National Statistics show wealth continues to be concentrated at the top and a substantial divide between the wealthiest and poorest in the country.
Meanwhile, despite the Bank of England’s remit to keep inflation at, or below, 2% for the past decade, the consumer price index for the same period shows inflation has increased by 29%, wiping out about half of any gains the average household will have made.
The bank added that, as property values had fallen since the start of the financial crisis in 2008 so property had fallen in importance as a measure of financial wealth
Total financial assets increased in value from GBP2.45 trillion in 2002 to GBP4.14 trillion last year contributing GBP1.7 trillion (63%) to the overall increase in total household wealth during the decade.
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By GlobalDataSubstantial growth in house prices in the years before the summer of 2007 and an increase in the number of privately owned homes saw the value of the UK’s private housing stock increase to GBP4.2 trillion in 2012 from GBP 2.6 trillion in 2002.
Nitesh Patel, economist at Lloyds TSB Private Banking, said: most of the increase in household wealth had occurred in the boom period between 2002 and 2007.
