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Households Became Richer Than Ever

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BRITAIN’S households became richer than ever last year thanks to a recovery in financial assets, sending net household wealth across the country past the £7 trillion barrier for the first time, a study out today reveals. UK households are now worth £255,502 on average each, with households £86,000 wealthier than they were a decade ago. Net housing equity – the value of UK houses minus the mortgages owed on them – grew from £1.89 trillion to £2.89 trillion between 2002 and 2007, but only edged up to £2.91 trillion by 2012. Link

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http://uk.finance.yahoo.com/news/british-households-richer-than-ever-100210921.html

The rise is largely thanks to an increase in financial assets, such as savings, Government bonds, investments, shares, life assurance and pensions – contributing £1.7 trillion to the overall rise.

Housing wealth increased by £1 trillion since 2002, as the value of property has risen by more than the increase in mortgage debt.

The leap in house prices up until 2007, along with an increase in the number of privately owned homes, saw the value of the UK's private housing stock almost double in value from £2.6 trillion in 2002 to £4.2 trillion in 2012.

..............

But there is a large divide in the distribution of wealth.

"The wealthiest 10% of households hold 22 times more wealth, on average, than those in the bottom half," said Patel.

It's all absolutely bloomin' marvellous, and we dared to doubt our leaders, here they are now fully vindicated.

pravda-logo.gif

Edited by inflating

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We have never looked after the young, orphaned, old, infirm and sick so well.

It's probably all got to stop though.

First to spot urchins and old hags, shoeless, toothless and starving on the streets in rags please upload a photo.

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so you live in a cave and eat bear.

10 years on you live in a cave and eat bear.

clearly, you are much better off now.

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Propaganda now approaching Soviet Union levels.

That was what I thought. Then I went to the re-education centre and realise that they are completely correct.

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It's true. We've got more pounds: the ones first loaned into existence by HBoS et al, then printed by the BoE.

The elephant in the room is how much the pound still buys. So long as someone can stir up so much instability in the rest of the world as to make us a 'safe haven', that's relatively secure.

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BRITAIN’S households became richer than ever last year thanks to a recovery in financial assets, sending net household wealth across the country past the £7 trillion barrier for the first time, a study out today reveals. UK households are now worth £255,502 on average each, with households £86,000 wealthier than they were a decade ago. Net housing equity – the value of UK houses minus the mortgages owed on them – grew from £1.89 trillion to £2.89 trillion between 2002 and 2007, but only edged up to £2.91 trillion by 2012. Link

TRANSLATION:

All you have to do to growth sterling wealth is create more sterling and debase the value of existing sterling.

And what exactly is the point of comparing equity and mortgages. Theres 25 million or so homes and about 11 million mortgages and less than 1 million sales each year. Are they saying most mortgaged homes are worth less than the mortgage debt outstanding?!

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We have never looked after the young, orphaned, old, infirm and sick so well.

It's probably all got to stop though.

First to spot urchins and old hags, shoeless, toothless and starving on the streets in rags please upload a photo.

They look happy enough :/

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It is true there are some that have got or feel richer....those in good secure well paid jobs, those with little debt that can keep all their income from their good well paid safe secure jobs plus overtime and allowances.

Everyone who happens to be buying or renting a place at today's prices have a young dependant family are self employed with irregular income and few benefits or relies on contact work, temporary work or part time work and does not have or expect to receive help or inheritance from relatives are "poorer than ever before" . ;)

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It's all absolutely bloomin' marvellous, and we dared to doubt our leaders, here they are now fully vindicated.

Well, they've done wonders with the money supply... I mean the banks, who are your real leaders.

Money = debt. Yaaay inflation!

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It's true. We've got more pounds: the ones first loaned into existence by HBoS et al, then printed by the BoE.

The elephant in the room is how much the pound still buys. So long as someone can stir up so much instability in the rest of the world as to make us a 'safe haven', that's relatively secure.

And as the report alludes to - many of the new pounds have been ending up in the pockets of those at the top. It doesn't matter so much if the pound is falling when you get the benefits of first access to the newly printed currency.

Seems that living standards are falling back for the average person due to a combination of cost of living increases outstripping wage rises and less cheap, easy consumer credit available.

That said, the average person in the UK still lives a life well beyond what a person living outside of the first world is ever going to be able to expect. That's what many billion pounds a month of borrowing/printing buys you ...

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BRITAIN'S households became richer than ever last year thanks to a recovery in financial assets, sending net household wealth across the country past the £7 trillion barrier for the first time, a study out today reveals. UK households are now worth £255,502 on average each, with households £86,000 wealthier than they were a decade ago. Net housing equity – the value of UK houses minus the mortgages owed on them – grew from £1.89 trillion to £2.89 trillion between 2002 and 2007, but only edged up to £2.91 trillion by 2012. Link

Outstanding personal debt stood at £1.422 trillion at the end of January 2013.This is up from £1.408 trillion at the end of January 2012. At the end of January 2013, individuals owed nearly as much as the entire country produced during the whole of 2012.

Outstanding secured (mortgage) lending stood at £1.265 trillion at the end of January 2013. This is up from £1.248 trillion at the end of January 2012.

Outstanding unsecured (consumer credit) lending stood at £158 billion at the end of January 2013. This is down from £160 billion at the end of January 2012.

UK Banks and Building Societies wrote-off £4.5 billion of loans to individuals over the 4 quarters to Q4 2012. In Q4 2012 itself they wrote-off £999 million (of which £469 million was credit card debt) amounting to a daily write-off of £10.92m.

http://www.creditaction.org.uk/helpful-resources/debt-statistics.html

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Don't see how a 9% loss of wealth inflation adjusted since 2007 makes us richer (107.3/117.5 = .91).

I was a little surprised by the headline since I haven't kept pace since 2007 (my balance sheet is about 4% down inflation adjusted).

Had I merely kept the faith and stayed 100% in cash, indeed I would be up to something like 110%. (which is why the likes of Bruce Banner are right)

Unfortunately I have 35% of my money invested in a half share of an unmortgaged property with my partner, dead money. And 65% of the rest does move forward. (about shadowing the RPI these days)

Worse, between 2008-2011 I had a sole share in a property that did sod all.

Being nominally up doesn't make me richer.

Edited by crashmonitor

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Seems that living standards are falling back for the average person due to a combination of cost of living increases outstripping wage rises and less cheap, easy consumer credit available.

But cost of living has fallen off a cliff since 2008 with zero interest rates.

At least for those of us whose costs are dominated by housing. That is to say, everyone in the UK today who isn't rich, and some who are.

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Bill gates walks into a bar- and instantly the average wage of people in that bar goes through the roof.

The magic of statistics. :D

Does Bill Gates have a wage?

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Shame all that wealth is tied up in unproductive houses that don't produce anything the world wants (prime London as a wealth dump for despots, oligarchs and fraudsters being the exception).

Sure 19th century economists would be faintly amused by all this. Houses being wealth rather than the end product of wealth. Sure, you built your mill to produce steam widgets, and you acquired property out of the profits, not the house becoming the wealth producer itself. OK so we skipped a step somewhere. ;)

Edited by Secure Tenant

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Shame all that wealth is tied up in unproductive houses that don't produce anything the world wants (prime London as a wealth dump for despots, oligarchs and fraudsters being the exception).

Sure 19th century economists would be faintly amused by all this. Houses being wealth rather than the end product of wealth. Sure, you built your mill to produce steam widgets, and you acquired property out of the profits, not the house becoming the wealth producer itself. OK so we skipped a step somewhere. ;)

What are you talking about....housing has become one of our best most profitable exports we should all be rejoicing in that. ;)

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What is everyone complaining about?

You Never Had It So Good!

Some interesting claims from the powers that be (were) in 1955, especially regarding housing policy and all those cutbacks the socialists were threatening to make.

Unfortunately it cuts off before the end. A bit like our governments, really.

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  • 244 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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