Wealth held in property up 127% in 10 years

The total value of wealth held in property in the UK has risen 127 per cent in the past ten years, research released today finds.

The net household wealth in the country – ie the value of property minus outstanding debt balances – now equates to £6,336 billion.

This is up from £2,795 billion a decade ago.

Average earnings in the UK have also increased 52 per cent since 1996.

The value of assets within houses also increased.

Household assets are now worth £7,627 billion, an increase of £4,343 billion since 2006.

Household debt increased £802 billion; up from £489 billion to £1,292 over the last decade.

"The financial position of households in total has strengthened substantially over the past decade," commented Martin Ellis, chief economist at Halifax Financial Services.

Rising house prices have been the main engine driving growth in the value of household wealth.

The value of housing equity in homes - the value of residential properties minus the cost of debts secured upon them – increased 244 per cent over period; up from £787 billion in 1996 to £2,702 today.

Personal saving also saw a sharp increase, with the value of liquid deposits doubling to £960 billion since 1996.

"While much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace.

"Housing has played an important part in increasing wealth, but there has also been a significant rise in the value of investments in financial assets in the last ten years," concluded Mr Ellis.