Household wealth up by £2.71 trillion

Household wealth has climbed by a staggering £2.7 trillion since 2002, with two-thirds of this figure driven by a rise in the value of financial assets.

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The figures from research by Lloyds TSB Private Banking have revealed that total net household wealth has surpassed the £7 trillion mark for the first time, with the rise in household wealth (62%) surpassing both the growth in gross household disposable incomes (44%) and consumer price index (29%).

The research also highlighted that the value of financial assets including bank and building society deposits, government bonds, shares in listed companies, life assurance and pensions have climbed from £2.45 trillion in 2002 to £4.14 trillion a decade later.

Including property, average household wealth stands at £255,502; however the top 10% of wealthiest households have an average of wealth of £1.82 million. In contrast, this figure stands at £82,000 for the bottom 50% of households.

“Household wealth has gone past £7 trillion for the first time; growing by over an estimated £2.7 trillion in the past decade. Most of this increase came during the “boom” years prior to 2007 when the economy grew rapidly, with rising employment and incomes,” said Nitesh Patel, economist at Lloyds TSB Private Banking.

“While wealth has soared in the past decade, there is a large divide in where it has accumulated. The wealthiest 10% of households hold 22 times more wealth, on average, than those in the bottom half. This is a substantial gap, although many of the wealthiest are older individuals who have had a much longer time to accumulate their wealth holdings, as well as to reduce their debts.”

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