The government’s data body found that property wealth now makes up over half, 55 per cent, of household wealth and was up £160bn at the end of 2012 compared to the year before.
By contrast, the overall value of the UK, which stood at £7.3 trillion at the end of 2012, only grew by 1 per cent, £74bn, from the same point in 2011, according to the National Balance Sheet 2012.
The 14 page statistical bulletin also showed that financial instutitions were worth a third less in 2012 than the year before. The sector’s total value fell to £221bn but was still at its second highest level since 1987.
The report stated: “Demand remained subdued throughout 2012. The UK was influenced by international factors such as the challenging economic conditions within the European Union and some volatility in food and commodity prices. Despite these pressures upon households and the negative contribution by general government, the total net worth of the UK increased.”
|Robert Forbes, partner at London-based Plutus Wealth Management said: “The problem is that people do not buy into the whole market, they buy one individual house or commercial property, and it is still very much like buying a share - there are always going to be winners and losers if you buy property purely as an investment.”|