Property market helps UK net worth hit £6.8 trillion

Britain’s resilient property market helped increase the UK’s worth by 3.3 per cent to £6.8 trillion despite the economy slipping back into recession, new figures have revealed.

By The Newsroom

Published 17th Aug 2012, 07:00 BST

The Office for National Statistics (ONS) said the UK’s net value increased by £224bn in 2011, meaning that every person in Britain is now worth £110,000.

Property values account for over half of household wealth as houses and flats have more than tripled in worth in the past 20 years, according to the ONS. It said properties were now worth more than £4 trillion across the UK, although the rise was more modest in 2011 than in previous years as property prices stagnated amid the economic uncertainty.

A near-40 per cent slump in central government net worth also hit the value of the UK.

Last year’s figures may also have been flattered by rising inflation, which climbed to 4.5 per cent in 2011 while average weekly wages increased by just 2.4 per cent.

Office for National Statistics