Rise in property assets and prices contributing to increasing household wealth
The UK property market is one of the most valuable anywhere in the world, with its ability to hold strong against adversity and its consistent price rises making it a fantastic prospect for investors and owner-occupiers alike.
And such is the strength of the British market at the moment, that it has had a significant impact on the overall wealth of the country over the course of the past year, according to new data. Lloyds Bank analysis shows that total British household wealth stands at more than £10.5 trillion as of the end of 2016.
This marks a rise of nine per cent when compared to the year before, and property has had a big hand in the change.
According to the findings, the number of homes owned by either occupiers or investors rose throughout 2016 by as much as 183,000 as building work brought a considerable amount of new stock to the market.
On top of this, house prices climbed by an average of five per cent year on year. These two situations combined meant that the total value added to household wealth by the property market alone was more than £430 billion.
This was 48 per cent of the total rise, which shows just how important an asset property has become in the modern world. Housing wealth also now accounts for 42 per cent of the overall household wealth, rising from 41 per cent in 2015.
It was also found that between 2006 and 2016, the value of housing stock in the UK as a whole grew by a staggering £1.7 trillion.
Sarah Deaves, private banking director at Lloyds Bank, said: "For many people, their overall wealth is locked up in assets that they hold for the longer term, like their homes, their pensions, Isas and investments.
"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."