ONS survey points to rising UK debt levels
Rising debt levels may be a concern for a segment of the population after figures released by the Office for National Statistics identified two different types of stress in the UK.
The 18-page ONS publication, The Burden of Financial and Property Debt, Great Britain, 2010 to 2012, which examined the self-reported burden of both household property debt and financial debt, found that the total financial debt in the UK was estimated at £104bn in 2010 to 2012, up from £96bn in 2008 to 2010.
The publication, based on the ONS wealth and assets survey, showed a slight reduction in households with financial debt, from 51 per cent in 2008 to 2010 to 50 per cent in 2010 to 2012.
| Years | Total financial debt, UK | Total household property debt, UK |
| 2010-2012 | £104bn | £1trn |
| 2008-2010 | £96bn | £980bn |
Source: ONS
However the ONS added: “Although the number of households with financial debt has decreased, in 2006 to 2012 the median value of the financial debt has risen from £2,800 in 2006 to 2008, to £3,200 in 2008 to 2010, and again increased to £3,500 in 2010 to 2012.”
A regional breakdown of the data showed that the South East had the largest median amount of financial debt in 2010 to 2012, estimated at £4,591.
The second highest was in the East of England, at £4,145.
Financial debt is calculated by taking the gross levels of financial liabilities, including non-mortgage borrowing, from the gross value of financial assets such as savings, shares and bonds.
The ONS also revealed that total household property debt in the UK rose to an estimated £1trn for 2010 to 2012, up from £980bn in 2008 to 2010.
London had the highest median property debt, recorded at £131,000 for 2010 to 2012. This was followed by the South East with £105,000.
Meanwhile, research carried out among 1,060 people in March for equity release lender More 2 Life found that 29 per cent of people aged 55 or older expected to be in debt in retirement.
Stuart Wilson, the firm’s marketing director, said: “Given the high levels of those who expect to be in debt at retirement, it is crucial that pensioners and those in the run-up to retirement focus on having sufficient income to support them once they retire.”
Adviser view
Bob Wilson, financial adviser for Norfolk-based GreenSky Wealth, said: “If property debt has increased, I would say that is something to do with the economy improving and the housing market picking up.”
