Record increase in household wealth

Total household wealth reached an estimated £9.1 trillion at the end of 2014, according to research by Lloyds Bank.

The figure includes assets such as property, financial instruments such as pensions and securities, and valuables such as jewellery.

The research, based on data from the Office for National Statistics, finds that total household wealth increased by £1.5 trillion during 2014. This is a rise of 19%, the largest annual increase on record.

The research suggests that the period of rapid growth has been driven by property and financial asset price inflation. House prices increased by an average 9% during 2014 while rising gilt prices pushed up the value of pension funds and life assurance by £757 billion.

Markus Stadlmann, chief investment officer of 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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