Friday, May 15, 2015

No figures for renters and no mention of the growing liability that anyone wanting to move up faces.

Torygraph: Families 20 per cent richer than last year

"House price hikes have been a big factor behind this, with a 9% rise in average property values last year, according to the report, which found 39% of total household wealth is now held in bricks and mortar"
Anyone whose next move is to a more expensive house has been negatively affected by rising house prices. My family has seen our hopes of ever 'trading up' from a flat to a house disintegrate as our paper gain on our flat is wiped out and then some by the bigger increase in price of anything nicer than it.
And then renters... unless you have a fat wad of other assets, you're falling even further behind than someone on the bottom 99% of the mythical 'ladder'

Posted by mombers @ 12:09 PM (5333 views)
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1. Thecountofnowhere said...

"New figures show the biggest leap in household wealth since records started in 2001"....despite the biggest housing bubble in history and banks dolling ourt dent like it was sweeties.

Sure sign of the QE induced mega housing bubble. It's not sustainable and it's going to go down like a lead balloon....

Friday, May 15, 2015 01:22PM Report Comment

2. Blissex said...

But if property prices have gone up 9% or whatever, that does not make families as a whole richer, because property price movements are purely redistributive, a zero (or negative) sum game. Also there have been no property price gains in a large part of the UK.

The story is simply that Torygraph readers have redistributed to themselves part of the wealth of other UK residents, and on average families are no richer than before.

Saturday, May 16, 2015 09:23PM Report Comment

3. reticent said...

Something tells me the average family doesn't hold 60% of their wealth in financial assets and 40% as housing equity. These figures are obviously skewed by a small minority of people who have enormous pensions and stock portfolios, especially since they specify net holdings vs mortgage equity.

I think this small minority is called the 1%.

Another fantastic piece of journalism from the Telegraph.

Sunday, May 17, 2015 07:28AM Report Comment

4. mombers said...

@1 good point. The average private pension pot is about £30k I think - much less than what you would (hopefully!) have in home equity. And of course, the more children you have, the higher your theoretical net liability from rampant house price inflation is. I have 3 kids, any home equity I gain is completely wiped out by the burden that the land monopoly black hole places on my children's future.

Sunday, May 17, 2015 01:13PM Report Comment

5. enuii said...

@2 might be a bit less than 30k as figures for 2010 were £25874, yet for 2005 were £26830 and 2002 £22047 according to Association of British Insurers (2011). The thing that strike me are that there will be increasingly larger numbers of pension poor over '65s going forward especially those who have been stuck privately renting or who have been continually mortgaged up to their eyeballs.

Perhaps the only real winners are the 'cashed out cockneys' whose audible twang is increasingly common in the provinces.

Sunday, May 17, 2015 05:47PM Report Comment

6. mark said...

I am 100% richer with knowledge the UK is being screwed by the gravy train system

so much council, police, health service, government corruption and ineptitude

Tuesday, May 19, 2015 10:42AM Report Comment

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