Wealth increases by over £86,000 per household in the past decade
Total household wealth in the UK has increased by £2.36 trillion (55%) in the past decade, according to latest research by Lloyds TSB Private Banking. Total household wealth at the end of 2011 is estimated at £6.6 trillion, up from £4.3 trillion in 2001.
The increase of £2.36 trillion in household wealth is equivalent to £86,342 per household since 2001. The value of household wealth has grown at a faster rate than the overall increase in consumer prices, with the retail price index up by 38% over the past ten years, as well as gross household disposable income, which grew by 44%.
Suren Thiru, economist at Lloyds TSB Private Banking, commented:
"The substantial growth in household wealth over the past decade is partly the result of the increase in the value of the housing stock between 2001 and 2007. Whilst financial assets have played their part, the value of housing stock grew at a significantly faster rate. Rising housing wealth has benefited those who own their own homes and those who rent out properties in the private sector.
"Whilst the financial position of UK households has weakened a little since 2007 as a result of deteriorating economic activity and lower house prices, overall their financial position is a lot stronger than a decade ago.”