Financial assets such as pensions and shares are driving a rise in household wealth, research by Lloyds Bank has suggested.
Based on data from the Office for National Statistics, the study found that total household wealth increased by £1.5 trillion during 2014 to reach £9.1 trillion.
Household financial assets accounted for much of the growth, increasing in value by £996 billion. House prices also contributed to the overall growth, rising by £452 billion in 2014.
Life assurance and pension funds experienced the biggest price rises increasing by £757 billion in 2014 and now make up 59% of households’ total financial assets.
Markus Stadlmann, chief investment officer at Lloyds Bank Private Banking, said:
“Since 2004 substantial growth in the value of the housing stock and financial assets has boosted net household wealth by close to £4 trillion. A booming housing market up to 2007 coupled with the rising value of households’ financial assets held and a growing number of older households are the key drivers.”
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