Household wealth sees huge rise

Household Kitty

The amount of money held by the average British household has seen massive leaps in the last 50 years. Today’s figure; household wealth including all forms of savings, investments, pensions, shares, property and equity, is an average of £237,000 compared to 1959’s figure of £72,000.

The 1980s contributed hugely to this rise as household wealth doubled during that decade. However in the last few years, perhaps due to the global recession, the household wealth actually saw a drop of around 15 percent.

According to one of Halifax Bank’s resident economists, Nitesh Patel, numerous factors have aided the rise of household wealth: “The past half century has seen a dramatic increase in wealth for British householders. In addition to greater overall economic prosperity, Government policy measures such as Right to Buy and the privatization of nationalized industries, coupled with the liberalization of financial markets, have provided the impetus for increased household wealth in the forms of both housing and financial assets”.

The property game has played a big part in the wealth rise, more and more people opt to invest in privately owned homes and housing prices have been steadily rising.

However Patel also cited the recession as a cause for the noughties drop: “The financial position of households has weakened since 2007 as a result of deteriorating economic activity and reduced house and share prices”.

As household wealth rises so does the importance of wealth preservation. Speak to an IFA to learn more about measures you can take to protect your money.