If the combined household wealth was evenly distributed, each family in Britain would have an annual income of £326,414. The net wealth of UK households grew by an estimated £1.5tn (or 19%) last year on the back of rising property prices and investment values, breaching £9tn for the first time, trillion remaining for the most part in the hands of the elite. The UK’S richest 20 percent have more than one hundred times the wealth of the poorest 20 percent. The Equity Trust says 34 percent of the population control the lion’s share of the £9.1 trillion, leaving 60 percent without any positive financial assets. The most recent data from the ONS indicated that the share of UK net household assets owned by the wealthiest 10 per cent stood at 44 per cent in 2012.
39% of total household wealth is now held in bricks and mortar. Financial assets now account for 61% of wealth, up from 55% in 2004.
Research carried out by Professor John Hills, director of the Centre for the Analysis of Social Exclusion at the London School of Economics, found that for the younger generation to bridge the gap between them and the average wealth of their parents they would have to save £33 every day for the next 30 years.
“Some of that generation eventually inherit from the more prosperous members of the older generation. But for those who cannot look forward to that assistance, building up the kind of wealth that many older people take for granted looks hopeless,” he said. “Given how much bigger the wealth gap now is compared to annual incomes, the growing importance of who you might get help from acts against social mobility.”
Markus Stadlmann, chief investment officer at Lloyds Bank Private Banking, said: “Since 2004, substantial growth in the value of the housing stock and financial assets has boosted net household wealth by close to £4 trillion."