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Biggest Drop In Britain's Wealth For 60 Years

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http://www.telegraph.co.uk/finance/personalfinance/8126304/Biggest-drop-in-Britains-wealth-for-60-years.html

Gross domestic product per person dropped 5.5 percent from a year earlier, the most since 1949, the statistics office said in an e-mailed report from London today. However, household disposable income per person increased by 1.2 per cent, helped by falling mortgage-interest costs, the ONS said.

The recession, which lasted for six quarters and ended in late 2009, removed more than 6 per cent of the economy and 600,000 jobs, making it the deepest since records began in 1955.

Britons are now bracing themselves for the deepest government spending cuts since World War II, which will lead to the loss of almost half a million public-sector jobs in the next four years.

Household net wealth rose 7.3 percent to £117,000 per person in 2009, the ONS said. That’s still below a peak of £128,000 in 2007 as a result of the drop in house prices during the recession, the statistics office said.

Total household debt as a percentage of household disposable income declined to 161 per cent in 2009 from 169 per cent a year earlier, it said.

Economists attributed the increase in wealth of households to babyboomers cashing in on house prices.

They warned high prices are unsustainable and that the typical value of a home in Britain is likely to fall further.

House prices climbed from an average of £43,000 at the beginning of 1987 to £199,000 before the credit crisis struck in August 2007. They have since dropped to £165,000 amid a lack of mortgage finance.

Wealth created by the expansion of debt. We can all be rich providing we take on enough debt.

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House prices climbed from an average of £43,000 at the beginning of 1987 to £199,000 before the credit crisis struck in August 2007. They have since dropped to £165,000 amid a lack of mortgage finance.

Wealth created by the expansion of debt. We can all be rich providing we take on enough debt.

This country is a joke, just how can anyone in their right mind think that is a healthy and economically sound state of affairs.

Note that the 1987 figure was followed by a crash in the late 80s, early 90s... sense had returned, then came Gordon...

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People in the 20s and 30s do not realise just how badly they are being treated. The students are rioting about the £6k to £9k per year tuition fees when they should be rioting about having to rent until they are 37 always assuming they can get a job and so have money to pay rent.

I reckon they ARE rioting about that to a great degree tangentially

The economy of this country is screwed as so much wealth is tied up in pile of bricks or paying interest to buy piles of bricks. Being simplistic if the average house cost 80k instead of 160k the extra 80k could be spent investing in shares or buying things.

But people don't see this all they see is HPI as the route to wealth as it worked for the boomers. What they seem to ignore is that the boomers bought at 3x a single wage and now the same property is 8x a single wage.

yes, and this points to long term real terms price slides as sanity very very slowly becomes restored

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Relatively poor people being able to easily borrow huge sums of money against manipulated massively overpriced house to spend on worthless overseas tat was the only way to kick start employment in the developing nations as triggered around year 2000 to enable the wet dream of globalisers.

It wasn't all every boomers fault.

Edited by billybong

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  • 138 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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