UK family revenue was already flatlining BEFORE Covid struck in line with new figures that present the massive wealth hole between the younger and previous and the north and south as value of residing disaster begins to chew

  • ONS information confirmed family wealth grew ‘marginally’ between 2018 and 2020 
  • Figures confirmed an infinite gulf in wealth between the younger and previous
  • Center-aged employees as much as 25 occasions richer than younger adults

UK family revenue was starting to flatline earlier than the pandemic and the present value of residing disaster struck, in line with damning new figures that present an infinite wealth hole between younger and previous.

Information from the ONS launched at the moment confirmed that the median wealth of British households has risen by 20 per cent because the pre-Monetary Disaster interval to £302,500.

However the determine solely rose ‘marginally’ between 2018 and 2020, the newest interval for which figures can be found, which got here because the Uk was making an attempt to extricate itself painfully from the EU.

The figures come as British households face a 2022 that would see them hit closely within the pocket. Consultants say that tax rises, hovering inflation and excessive fuel costs may go away them lots of of kilos out of pocket as quickly as April

The ONS information confirmed an infinite gulf in wealth between the younger and previous.

The age group with the media highest family revenue was in households the place the top was aged 55 or over and nonetheless in work, at £553,400. The ONS famous: ‘The wealth of this group was 25 occasions greater than these aged 16 to 24 years.’ 

Sarah Coles, senior private finance analyst at Hargreaves Lansdown, mentioned: ‘The divide between the richest and poorest teams isn’t widening, however it’s nonetheless eye-watering. 

‘The richest 10 per cent of households maintain 43 per cent of all of the wealth, and the least well-off half of the nation holds simply 9 per cent of the wealth. The mega-wealthy 1 per cent of the nation has a mean of £3.6 million in belongings.

‘Whereas pensions make up a serious a part of the distinction, whether or not you’ve got onto the property ladder additionally drives an enormous divide between essentially the most and least rich. Property wealth is the second greatest element of wealth general – at 36 per cent.

‘The very wealthiest are more likely to personal their residence outright, whereas these with fewest belongings are more likely to be struggling to purchase their first property. It’s one motive why older individuals have much more wealth than youthful individuals, who’ve a mountain to climb to afford their first property.’

The age of first-time residence consumers is 32, the ONS mentioned. Wealth was highest within the South East at £503,400, having risen 43 per cent since 2006 (after adjusting for inflation). Wealth was lowest within the North East at £168,500.

The ONS report famous: ‘The wealthiest area of Nice Britain in April 2018 to March 2020 was the South East, which additionally noticed one of many quickest will increase in common wealth since 2006. 

Median wealth within the South East was £503,400 having risen 43 per cent since 2006, after adjusting for inflation.

‘The areas with the bottom median wealth have been the North East and Scotland. Common wealth within the North East (£168,500) was about one-third of the common degree of wealth within the South East. The North East is among the few areas the place median wealth is decrease now than in 2006. 

‘Family wealth within the North East decreased essentially the most since 2006, lowering by 17 per cent. Each the North East and Scotland noticed massive decreases in median wealth in contrast with the earlier interval, of seven per cent and 12 per cent respectively after adjusting for inflation, with London additionally experiencing a big lower of 8 per cent. Dwelling possession and pension participation charges have been decrease in these areas.’

It got here because it was revealed home costs elevated by greater than £24,500 on common in 2021, marking the most important annual money rise since 2003.

The everyday UK property worth hit a brand new file excessive of £276,091 in December 2021, Halifax mentioned.

Property costs hit new file highs eight occasions final 12 months, in line with its month-to-month index, regardless of the impacts of the coronavirus pandemic.

However home worth progress is anticipated to gradual significantly this 12 months, the report added.

The common UK home worth elevated by 9.8 per cent yearly and by 1.1 per cent month on month in December.