The UKs households are worth over 7 trillion pounds!
For the first time ever, the UK’s household wealth has topped 7 trillion pounds. It was estimated at £7.05 trillion after outstanding debts were minuses for the end of 2012 beginning of 2013. This is the net wealth which includes the value of the residential buildings as well as the financial assets held by the household then any debts against the household are taken away.
Lloyds TSB carried out the research and suggested that despite the poor economy there had been a huge £2.7 trillion increase in the past decade equating to £86,000 per household. The bank claims that a rise in financial assets had boosted the UK’s household wealth over the past decade contributing to at least £1.7 trillion to the total growth. Financial assets include bank and building society deposits, shares in listed companies, government bonds as well as pensions and life insurance.
Most of the increase in household wealth came before 2007 when the economy grew rapidly and employment as well as incomes rose however, there is a large divide between the wealthiest and the poorest households. The wealthiest 10% of the households in the UK have a massive 22 times more wealth on average than those households in the bottom half of the list.
According to the National Association of Estate Agents, house hunters surged to the highest levels in five years in the month of January 2013 with an average of 214 potential buyers registering with an estate agent. This is the highest figure since 2007 which is great news for the property market, especially because seven sales were agreed onaverage per branch in January. This figure is up five from December, although the amount of homes on the market decreased slightly month on month to 56% per branch
The amount of mortgages that are available on the market have increased around one third since the Funding for Lending scheme was introduced because lenders have been slashing their rates since this new scheme was launched.
According to figures released from the Land Registry, house prices have jumped up 1% month on month in January 2013 across England and Wales meaning the average house price was £162.441. As expected, house prices increased at the fastest rate in London where homes sold on average for £373.207 because house price are 7.1% above what they were a year ago. Unfortunately, house prices in the North West of England are down 4.2% year on year with the average house price down to £106.527.
Do you think this is the beginning of the housing markets long road to recovery? Could 2013 be the year the economy starts to recover?
Amanda McGovern, Pali Ltd
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