Substantial rises in both financial and housing wealth have driven the increase in total household wealth in the past 50 years.
Housing wealth has increased in value by nine times in real terms since 1959. This is a function of significant rises in both house prices and the level of home ownership. Housing wealth has increased significantly as a proportion of total household wealth; up from 22% in 1959 to 38% in 2009
By decade, the biggest rise was in the 1980s, when household wealth more than doubled (108%). Housing and financial wealth increased by 92% and 124% respectively.
Household wealth fell by 15% between 2007 and 2008 and remained 8% below its 2007 peak despite an improvement in 2009
Nitesh Patel, economist at Halifax, commented: "The past half century has seen a dramatic increase in wealth for UK householders. In addition to greater overall economic prosperity, Government policy measures such as "Right to Buy" and the privatisation of nationalised industries, coupled with the liberlisation of financial markets, have provided the impetus for increased household wealth in the forms of both housing and financial assets.
“The financial position of UK households has weakened since 2007 as a result of deteriorating economic activity and reduced house and share prices. Nevertheless, much of this was recouped in 2009 as both house and equity prices recovered somewhat and notably household wealth has still risen over the past decade."
