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Britons net wealth hits five-year low

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  • 12/11/2010
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Britons net wealth hits five-year low
Britons' wealth hit a five-year low during 2008 on the back of the housing market correction, figures have revealed.

The typical household saw its net wealth drop to £109,000 during the year, the lowest level since 2003, according to the Office for National Statistics (ONS).

But it returned to an average of £117,000 the following year, as property prices started to rise again.

Despite the blip, household wealth has more than doubled in real terms since 1987 when it stood at around £56,000.

The majority of household wealth is held in property, with substantial amounts also held in life assurance and pension funds, with savings accounts the third largest asset.

The fall in property prices and the economic downturn appears to have encouraged consumers into better savings habits, with the amount people set aside as a percentage of household income soaring from a near 40-year low of 2% in 2008 to 7% last year.

Around 43% of UK households reported some difficulties keeping up with their bills and credit commitments in December last year, although this was below the average of 54% for all EU countries.

The amount of disposable income households have had risen continuously between 1990 and 2009, despite the recessions seen during this period.

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