Household Wealth Has Doubled
Published / Last Updated on 08/11/2007
According to the Halifax Financial Services, the total amount of household wealth has doubled in the last decade. Net household wealth, which is after the deductions of any outstanding debt - has risen from £2.8 trillion in 1996 to £6.34 trillion in 2006.
Retail prices have risen by 30 per cent and average earnings have increased by 52 per cent between 1996 and 2006. Halifax Financial Services are predicting that the total financial savings will increase by around 10 per cent, £4 trillion by the end of 2007. This is three times more than the current level of debt.
Our view
Although there has been an increase in the amount of debt, household assets have also risen, probably at a faster pace. We would add though that the divide between the rich and the poor seems to be growing, which is worrying, as the Government wants us all to look after ourselves in retirement.
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