The UK’s median household wealth is £293,700, wiped out by pandemic savings, but the latest official figures show consumers are worried about the cost of living and housing.
Figures from the Office for National Statistics show that between April 2018 and March 2020, median household financial savings rose by 25% to £10,400 between March 2022 and March 2022.
The agency said “household savings rates peaked” during the pandemic, “when governments imposed varying degrees of restrictions on social contact and closed shops, restaurants, bars and other recreational activities.”
The richest households in the sector in the two years to March 2022 had household wealth of £1,200,500 or more.
The bottom 10% of households have £16,500 or less.
By region, the biggest differences were £489,800 in the South East and £179,900 in the North East.
Property accounted for the largest share of these sums, at 40%, followed by private pension wealth, at 35%, and net financial wealth, at 14%.
Compared to households with 16 to 24-year-olds in their head, households with 65 to 74-year-olds in their head have 33 times the wealth of households with 65 to 74-year-olds.
Body said: “Household wealth gradually increases with age, from £15,200 for households aged 16 to 24 to a peak of £502,500 for households aged 65 to 74.”
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The ferocity of the explosion in savings and investments during the pandemic is laid bare – soaring by 25%.
“It has spread among young people, who have almost tripled their financial wealth, selling for an average of £800. However, it has had little impact on our overall pattern of building wealth in life, and those who are just starting out are struggling Periods are more vulnerable.”
Stephen Lowe, director of Just Group Communications, added: “Median household wealth continues to be driven primarily by property, with homeowners seeing a significant boost in wealth during the pandemic, thanks to rising house prices in this data. But in Within this general trend, images remain mixed.
“There is a clear divide between areas where property prices are higher and between demographic groups, such as retirees, where home ownership is higher.
“Perhaps most notable is the wealth gap between homeowners and renters, with those with direct financial wealth seeing their median wealth increase to £55,300 in 2020-2022, compared to just £900 for renters.”
But today’s further national statistics reveal households are not financially secure, according to the Public Opinion and Social Trends report.
The digital agency found that 86% rated the cost of living as “an important issue facing the UK today”, followed by the economy at 72%. The housing crisis was rated as a problem by 60%. The biggest concern is the NHS, at 88%.
Nearly 6 in 10 adults, or 57%, reported that their cost of living had increased this month through early January.
About 3 in 10 adults who make rent or mortgage payments report that they find it very difficult to afford these payments. A similar proportion, 32% reported finding their energy bills difficult or somewhat difficult.
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