By decade, the biggest rise was in the 1980s, when household wealth more than doubled (108%). Housing and financial wealth increased by 92% and 124% respectively. Substantial rises in both financial and housing wealth have driven the increase in total household wealth in the past 50 years.
Housing wealth has increased in value by nine times in real terms since 1959. This is a function of significant rises in both house prices and the level of home ownership. The value of households' financial assets has increased four-fold in real terms since 1959.
Housing wealth has increased significantly as a proportion of total household wealth; up from 22% in 1959 to 38% in 2009. Household wealth fell by 15% between 2007 and 2008 and remained 8% below its 2007 peak despite an improvement in 2009.
Housing wealth has increased in value nine times from £276 billion in 1959 to £2,519 billion in 2009. Increases in average house prices and the substantial growth in the number of privately owned homes - from 12.1 million in 1959 to 22.1 million in 2009 - have been the main drivers behind the growth in housing wealth.
The increase in the number of privately owned homes was largely due to an increase in owner occupation from 43% in 1961 to 68% in 2009. Rising housing wealth has benefited those who own their homes and those who privately rent out properties.
The value of financial assets (such as savings, pensions and shares) increased four times from £993 billion in 1959 to £4,024 billion in 2009. The deregulation of financial markets, the rise in share ownership and changes to private pensions provision have all helped to boost the holdings of financial assets.
Share prices, as measured by the FT All Share Index, have risen at a much faster rate than overall consumer prices. Whilst the retail price index has risen by over 13 times, the FT All Share Index has grown 25 fold since 1965 (when records first became available for this series).
Nitesh Patel, economist at Halifax, commented:
"The past half century has seen a dramatic increase in wealth for UK householders. In addition to greater overall economic prosperity, Government policy measures such as "Right to Buy" and the privatisation of nationalised industries, coupled with the liberlisation of financial markets, have provided the impetus for increased household wealth in the forms of both housing and financial assets.
"The financial position of UK households has weakened since 2007 as a result of deteriorating economic activity and reduced house and share prices. Nevertheless, much of this was recouped in 2009 as both house and equity prices recovered somewhat and notably household wealth has still risen over the past decade."
