Total household wealth for the end of 2012 is now estimated at £7.05 trillion, while there has been an increase of £2.71 trillion over the past decade; equivalent to a rise of £86,000 per household.
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The report says that the value of household wealth has grown at a faster rate (62%) than either gross household disposable incomes (44%) or the consumer price index (29%) since 2002.
The report adds that housing wealth (the value of housing less the amount of mortgages outstanding) has fallen in importance relative to financial wealth in recent years. Housing now accounts for 41% of total wealth compared with the recent peak of 45% in 2004.
Conversely, the proportion accounted for by financial assets has risen from 55% to 59% between 2004 and 2012. These changes are partly due to changes in household portfolios and partly to differing asset price performances, the report suggested.
Total financial assets increased in value from £2.45 trillion in 2002 to £4.14 trillion a decade later, contributing £1.7 trillion (63%) to the overall increase in total household wealth during the decade.
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By GlobalDataOver half (53%) of financial assets are tied up in life assurance and pensions funds (LAPF), and a further 24% is in the form of deposits held with financial institutions and National Savings. Both have increased by 80% over the past decade; deposits grew by £476 billion and LAPF by £1 trillion.
The report added that in spite of the subdued economic climate, households have also benefitted from stock market growth during the same period, with investments in equities rising by over £35 billion (or 21%).
