More wealth tied up in homes
by Elaine Frei
New data shows that the average Briton has over half of their personal wealth in their homes, much more than the 40 percent of personal wealth that was represented by their homes ten years ago. At that time, 58 percent of the average Briton’s wealth was in the form of financial assets, including savings, share ownership, life assurance policies, and pensions.
According to insurer Prudential (LSE: PRU; NYSE: PUK), the main reason for the switch is the rising prices being paid for houses, combined with a diminished value for shares and pensions due to uncertainties in the stock market. By 2009, the insurer says, the amount of total wealth invested in houses will rise to 60 percent.
Some economists worry that too many people are borrowing against the money invested in their homes in order to make home improvements, pay off other obligations, or just to buy something that they want. This concern stems from the possibility that rising interest rates could make it difficult or impossible to pay off those loans on equity and result in the loss of their homes.
Discuss this in the Finance Markets forums
Story link: More wealth tied up in homes
Add to Bookmarks:
Related financial stories to: More wealth tied up in homes
- Property forms 60% of UK wealth
- RICS: HIPs spurred rise in homes put on the market in May
- Shortage of smaller homes pushes prices higher
- Bellway Homes’ sales halved since July
- Fewer homes owner-occupied in England
- Hips extended to three-bedroom homes
- One million homes for sale in England and Wales
- Action needed on 289,000 unoccupied homes
- Barratt offers 43% discount on new homes
- Inheritance tax hits over 2 million homes
Previous: « Equities markets higher as oil prices drop
Next: Bank customers “annoyed” but willing to pay fees »
Visited 549 times, 2 so far today
