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Property 55% of Brits' wealth

Property 55% of Brits' wealth

Wednesday, 4 April 2007 12:00 AM

Property and non-financial assets make up 55 per cent of the average Briton's wealth, a new study reveals.

The research from Prudential also shows this is set to grow to 60 per cent if current trends continue.

In 1996 this figure stood at 42 per cent for non-financial assets, which are primarily made up of property.

"House prices have risen significantly over the last 20 years and this is one of the reasons why we have seen such a shift in wealth components," commented Ali Crossley, director for lifetime mortgages at Prudential.

"But while we have seen a significantly higher increase in house prices in the south of England compared to the rest of the country, our report shows that the northern regions are by far not the worst off.

"This is good news for people who are considering using their property as part of their retirement planning portfolio, especially for those who will need to supplement their state and work pension. The equity tied up in their homes could prove crucial in boosting their funds, and allowing them to live the retirement they desire."

The report finds Britons living in the south-east have the most money tied up in their home, at £210,077, followed by those living in eastern England (£183,805) and London (£169,477).

However, in the last two years the regions seeing the largest increase in the proportion of their wealth their homes account for are the north-east, Wales and Scotland.