The U.K. total household wealth has gone past the £7 trillion mark for the first time ever, according to a recent research by Lloyds TSB Private Banking. The net wealth of all residential buildings and financial assets held by British households, with the outstanding debts excluded, was estimated to be £7.05 trillion in the end of the last year. A rise in financial assets resulted in large divide between the rich and poor.
Lloyds TSB Private Banking also said that despite the economy is not in its best shape, it has been boosted by the rise in financial assists; increase of impressive £2.71 trillion occurred over the past ten years, equaling to £86,000 per a U.K. household. Financial assets contributed some £1.7 trillion to the rise. They include building society and bank deposits, pensions, shares in companies, government bonds, and life assurance.
The housing wealth increased by £1 trillion over the past 10 years, as the property value soared, overcoming the mortgage debt. Lloyds TSB Private Banking economists who carried over the research said the British household wealth was growing at a rate of £2.7 trillion a year over the past decade, which is a rather rapid rise. The growth was achieved during the ‘booming’ years prior to 2007, when the economy was peaking, and incomes and employment rose.
Even though the wealth has risen, the divide between the poor and rich has widened. The top-10 percent of the wealthiest U.K. households are 22 times more wealthy than those in the bottom of the list.