Due to the increase in housing prices and the increased value of financial assets, last year it was found that British households became substantially richer. It is thought that the total value of the assets that are owned by householders, in comparison to corporations and charities, increased by 9%. It has been said that the market received a double boost over the course of last year; with the rise in housing prices and the so called booming City providing the lift needed to boost values by 9%.
Research has found that the total value of assets that are owned by homeowners has breached £10 trillion, a boost of £892 billion according to the private banking arm of Lloyd’s Bank. Around half of this gain, 4.9% to be more precise, has been attributed to the rise in housing prices. There has also been 183,000 homes added to the stock of privately-owned properties in the market. This means that more housing and an increase in house prices has led to an increase £431 billion.
Financial assets that have also been reported to have grown includes bank and building society deposits, government bonds, shares in companies, life assurance and pensions. These financial assets have increased in value by 8% which is the equivalent of £461 billion.
Most of the wealth gains has come from a concentrated number of assets that are held for a long period of time. These figures are not necessarily related to day-to-day incomes, although this has reintroduced debates over inequality and the widening gap between those in the nation with property and a pension and those who are without. It is thought that in recent years, this wealth inequality has significantly increased, mostly because of the increased value of the housing market. This is concerning, but there is a slight ray of hope as the inequality figures have dropped slightly since 2008.