Household wealth 'has grown fivefold in 50 years'
By myfinances.co.uk staff
Household wealth in the UK has increased more than five times in real terms since 1959, according to new research.
The study by Halifax shows the value of British families' homes and financial assets minus outstanding debts has grown from £1,251 billion to around £6,316 billion in 2009 in today's prices.
Housing wealth, measured as a property's value minus mortgage costs, has increased nine times from £276 billion to £2,519 billion, mainly thanks to higher house prices and the number of privately-owned homes increasing from 12.1 million in 1959 to 22.1 million last year.
Meanwhile, the value of households' financial assets such as pensions, shares and savings has grown from £993 billion to £4,024 billion, reflecting wider share ownership and changes to private pension provision.
Halifax economist Nitesh Patel said that household wealth has weakened since 2007 because of "deteriorating economic activity" and declines in property and share prices.
"Nevertheless, much of this was recouped in 2009 as both house and equity prices recovered somewhat and notably, household wealth has still risen over the past decade," he added.
According to Credit Action, total personal debt in the UK stood at £1,460 billion at the end of March.
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