Subscribe to The Money StopNews Feed

Browse > Home / News, News-Banking / £31,000 fall in average household wealth

£31,000 fall in average household wealth

October 5, 2009 by admin  
Filed under News, News-Banking

1 Comment

It has recently been reported that average household wealth in the UK has fallen by around £31,000 since last year, with households seeing their household wealth drop as a result of the global credit crunch and the ongoing recession.

Figures were put together recently for the BBC, and showed that on average each household in the UK had seen its household wealth drop by £31,000 as a result of a number of factors.

Billions of pounds have been knocked off in the UK due to plunging house prices, leaving many homeowners withy far less equity in their homes In addition to this the financial crisis has resulted in share prices and the value of investments plummeting, which has further dented household wealth.

The figures were put together from data from the Bank of England and the Office for National Statistics, and showed that £422 billion had been wiped off property prices whilst £393 billion had been wiped off share prices.

Another factor that has affected household wealth is the situation with pensions, and officials have said that most average households have the majority of their wealth tied up in their properties, their pensions, and their investments and savings.

With all of these areas being adversely affected by the global credit crunch it is little wonder that the average household has lost out to the tune of £31,000.

Over the course of last year the overall drop in household wealth collectively was said to be around £815 billion according to officials, and one industry official said: “It is a huge drop to happen in one year. But we have had the biggest house price fall yet seen in just one year, combined with a fall in equity prices.”

Tags: homes in addition, Wealth, bank, property prices, household wealth, billions, Household

Tags:

Related Entries

  • Expats heading abroad to be better off
    • Almost half of British professionals who head abroad expect to be better off, according to the results of a new survey. Findings from Natwest reveal that the average wage for an expat is £67,000
  • More Brits may face bankruptcy in 2008, warns Addidi
    • More people in the UK may face bankruptcy or be forced to arrange an IVA (Individual Voluntary Arrangement) this year, Addidi Wealth has said. The financial planning and wealth management service warns that the global
  • Sharp fall in retail sales for January
    • According to recently released figures January saw a sharp fall in the level of retail sales, with sales levels falling at their sharpest level in a year and a half. Household goods are said to have
  • Consumer wellbeing ‘worsening’
    • Many consumers are facing increasing strain on their day-to-day living costs and spiralling levels of debt, according to research from financial experts. Findings from the Financial Reality Index from the Alliance Trust, which analyses factors
  • Fuel poverty could affect a quarter of households
    • According to a recent report fuel poverty could be affecting a quarter of households in the UK by the end of next year, with huge hikes in energy prices over the course of this year
  • Increase in household spending
    • Figures from a recently released report have shown that household spending levels have increased enormously over the past five years in order to cope with rising household bills and living costs. The figures were released
  • Bonuses won’t be blown this year
    • Many of the UK's top earners are preparing to receive their bonuses this week and they already know what they will spend them on.That is according to Barclays Wealth, which carried out research and found
  • Household spending rises
    • We are spending more on household appliances such as kettles and fridges.That is according to Halifax Credit Cards which points to a disparity between how much we spend and how much appliances cost in comparison

Comments

One Response to “£31,000 fall in average household wealth”
  1. Scopulus says:
    October 6, 2009 at 12:36 am

    Sounds a lot but it only a loss on paper for most who have had their home for a while and intend to stay there.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!