(London) Household wealth has grown by its largest annual amount in a decade in further signs that the economy’s recovery is picking up, a report has found.
Rising housing market activity and the increased value of people’s financial assets helped household wealth to increase by £717 billion in the last year, according to research by Lloyds Bank Private Banking.
Individual households have typically seen their wealth grow by £96,000 over the last decade to reach £ 280,787.
Total household wealth is estimated to have reached £7.84 trillion by the end of last year.
Household wealth is measured by working out the value of people’s assets such as their house, savings, shares and pensions, minus what they owe on debts like credit cards and mortgages.
Ashish Misra, head of investment policy at Lloyds Bank Private Banking, said: “I n the past year household wealth grew by £717 billion, the largest annual rise in the decade.
“Increasing activity in the housing market and continued growth in equity prices has boosted household wealth. These figures, to an extent, provide further evidence that the recovery in the UK economy is gathering pace.”