The total household wealth for the UK is rising, according to the latest reports, and the thriving nature of the property investment market has a big part to play in this improvement, it has been found.
According to the latest analysis from Lloyds Bank, the total household wealth rating for the UK now stands at some £10.5 trillion as of the end of 2016. This staggering amount represents a rise of nine per cent when compared to 2015, with both pension pot increases and property investment project key to the growth in overall wealth.
Whether it’s an increased volume of building starts, an improvement in the level of investment in the market or simply rising house prices, property investors in the UK are contributing a large chunk of the overall wealth of the country, and this only looks like it will improve in years to come.
According to Lloyds Bank, property prices rose by five per cent on an annual basis to the end of 2016. When this was coupled with a rise of 183,000 in terms of the number of homes owned nationwide – a result of new building and higher investment – property managed to contribute around £431 billion to the overall increase.
It meant that of total household wealth for the year, the property market accounted for an amazing 48 per cent of the growth. This shows just how much of a significant asset property is at present, and how those who put their money into the market are increasingly seeing it pay off, with strong returns and a really healthy outlook for the future.
The growth witnessed in the overall value of all property in the UK throughout 2016 means that it now accounts for 42 per cent of the total household wealth, rising from the 41 per cent recorded the year before. Again, the fact property accounts for 42 per cent of the nation’s wealth shows just how much of a big part it has to play as an asset in the world of investment.
And this is no short-term phenomenon either. The data shows that over the past ten years, there has been a significant rise in property value. Between 2006 and the end of 2016, the total value of property has increased by an amazing £1.7 trillion. This shows that growth in the asset’s value, and overall capital gains investors can get still makes property a very attractive proposition.
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.”
This article has been provided by London-based property consultancy, Experience Invest.