More than half (57%) of all UK national wealth is currently tied up in housing stock, according to government figures out today.
The Office for National Statistics found that out of Britain’s cumulative worth of £7.3 trillion in 2012, £4.4 trillion was wrapped up in housing.
The proportion has jumped 4% since 2011 and threatens to keep rising as house prices continue to recover nationally and explode in parts of London.
Since the property boom of the 1990s, UK’s overall property wealth has quadrupled, having stood at just £1.2 trillion 20 years ago.
The vast disparity between housing and other assets has sparked growing warnings that a correction is on its way and that Britain could be on the precipice of another property bubble.
The figures are part of UK’s national balance sheet, which was published today. It also showed that UK’s national wealth rose 1% last year or £74bn. This was mainly thanks to a £225bn increase in the value of non-financial assets, such as houses and cars.
The majority of wealth was driven by the increased value of households, although this was depressed by public sector debt and the fall in financial assets such as shares and deposits.
Stay peeled! A fuller breakdown of the figures is coming..
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