Net property wealth makes up the largest proportion (40%) of household wealth in Great Britain, data from the Office for National Statistics has revealed.
It was closely followed by private pension wealth (35%), while net financial wealth (14%) and physical wealth (10%) made up much smaller proportions.
The data showed that during the period April 2020 to March 2022, median household wealth in Great Britain was £293,700. The wealthiest 10% of households had household wealth of £1,200,500 or more, while the least wealthy 10% had £16,500 or less.
The findings also highlighted a stark regional divide, with the largest difference seen between the South East (£489,800) and the North East (£179,900).
The ONS said households who owned their property outright and households with a head aged between 65 and 74 years old, saw the largest increases in median household financial wealth, at £4,300 and £3,300 respectively. Household wealth was over 15 times higher for households who owned their property outright, compared with those who rented, the findings showed.
Stephen Lowe, group communications director at Just Group, said: “Median household wealth continues to be driven primarily by property with homeowners seeing a significant boost in their wealth during the pandemic period thanks to rising house prices. But within this general trend, the picture is still mixed.
“There are clear divides between areas where property prices are higher and between demographic groups such as retirees where homeownership is higher. Perhaps most notable is the chasm in wealth between homeowners and renters.”
Winston Ruddick, senior consultant at Broadstone, commented: “Inequal distribution of wealth across the country is the main takeaway of the latest Wealth & Assets Survey which clearly illustrates a divide between the ‘haves’ and the ‘have-nots’.
“While the top decile are millionaires in terms of their overall wealth, the least wealthy 10% have less than £20,000 which not only leaves them financially insecure in the short term but paints a bleak picture in terms of their longer-term prospects looking ahead to retirement.
“Owning your own home continues to act as a proxy for financial security and wealth appreciation with those who own outright seeing their median financial wealth grow by £4,300 in the two years to 2020-2022 compared to just a £400 bump for renters.”
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