The number of millionaire households in Britain has risen four-fold since the financial crisis a decade ago, official figures revealed yesterday.
There were 3.56million families worth £1million or more at the end of June 2016 – up from 890,000 in mid-2008 on the eve of the recession – as rising property prices and growing pension pots swelled the ranks of the once-exclusive club.
The report, by the Office for National Statistics using the latest figures available, showed families were the wealthiest they have ever been by the time the country voted for Brexit.
Between 2014 and June 2016 the number of households worth more than £1million soared by 810,000 as total wealth jumped £1.7trillion to a record high of £12.8trillion.
he young were also judged to be far worse off than older generations who have had longer to save into their pension pots and gain equity in their homes
The ONS report also revealed just how valuable pensions are to family finances, with £5.3trillion invested in them by mid-2016, up 20 per cent on two years earlier, while the average retirement pot was up from £96,500 to £111,500.
The amount of money tied up in property was also up, by 17 per cent, at £4.6trillion.
Household wealth includes everything from private pension pots, savings and property to cars and art work, minus outstanding debts such as mortgages and credit cards.
ccording to the report, the average household in the South East was worth £380,600 while those in the South West had £336,400 and Londoners typically had £316,600. By contrast, the lowest was in the North East, with an average of £163,000. Pictured: Transporter Bridge, Middlesbrough
Rachael Griffin, a financial planning expert at Old Mutual Wealth, said: ‘Banking your future prosperity on a rising property market is risky, and no substitute for a well-diversified saving and investment plan.’
The ONS said the average household was worth £259,400 at the end June 2016 – up from £225,100 two years earlier.
But wealth is unevenly spread around the regions.
According to the report, the average household in the South East was worth £380,600 while those in the South West had £336,400 and Londoners typically had £316,600.
By contrast, the lowest was in the North East, with an average of £163,000.
The richest 10 per cent of households – those worth £1.2million or more – held 44 per cent of the total wealth and around five times more than the poorest half of families.
The young were also judged to be far worse off than older generations who have had longer to save into their pension pots and gain equity in their homes.
Conor D’Arcy, senior policy analyst at the Resolution Foundation think-tank, said young people in particular are feeling the effects of Britain’s wealth divide
Nearly a quarter of 16 to 34-year-olds were in the poorest tenth of the population and nearly nine in ten were in the bottom half.
The ONS said: ‘There are some in the younger age groups who have high incomes, as they may have well-paid jobs. However, they have comparatively low levels of wealth.
This is because they have not yet had time to accumulate levels of wealth.’
Conor D’Arcy, senior policy analyst at the Resolution Foundation think-tank, said: ‘Britain is very good at generating wealth, but terrible at spreading it around the country.
‘As a result, we have unacceptably high levels of wealth inequality.
‘Young people in particular are feeling the effects of Britain’s wealth divide.’
Household debt rose by 7 per cent between 2014 and 2016 to £1.23trillion. Of that, £1.12trillion was mortgage debt. So-called financial debt, which includes credit cards, rose by 15 per cent to £117billion.
Mark Dyason, managing director of financial broker Thistle Finance, said: ‘This survey provides yet more evidence of how the average household was slowly racking up debt in the era of low interest rates.’