Total household wealth reaches over £10 trillion
Total household wealth reached an estimated £10.5 trillion in 2016 – a 9% increase from 2015, research from Lloyds Bank Private Banking has shown.
Wealth held by households has increased by £3.9 trillion (59%) since 2015.
Growth in mortgage debt slowed since 2008 according to the data, with an annual growth rate of just 1%.
Sarah Deaves, private banking director at Lloyds Bank, said: “With rising house and equity prices, net worth has increased substantially in the past decade, growing by £143,000 per household on average.
“Increasing levels of wealth are clearly positive for households, but with recent changes which also highlights the increasing importance of proper financial planning, especially as people approach and move into retirement.”
The contribution of housing wealth in the household portfolio mix has risen to 42% from 41% in 2016
The research suggested that the increase in housing wealth has been driven by the £1.7 trillion rise in the value of the national private housing stock from £2.6 trillion in 2006 to £4.4 trillion in 2016.
Average house prices are 51% higher than in 2006 whilst the number of privately owned homes grew by 9% to £23.4m in 2016 in the same time period.