The UK’s median household wealth was lifted by pandemic savings to come in at £293,700 — but the latest official data shows that consumers are concerned about the cost of living and housing.
In periods April 2018 to March 2020 period and April 2020 to March 2022 median household financial saving jumped by 25% to £10,400, data from the Office for National Statistics shows.
The body says that “rates of household saving peaked” during the pandemic “when the government imposed varying levels of restriction on social contact, along with the closure of shops, restaurants, bars and other recreational activities.”
The wealthiest 10% of households had household wealth of £1,200,500 or more, says the department, which focuses on the two years to March 2022.
The least wealthy 10% of households had £16,500 or less.
By region, the largest difference is seen between the South East, at £489,800 and the North East, at £179,900.
Property made up the largest proportion of these sums, amounting to 40%, followed by private pension wealth, 35%, followed by net financial wealth, 14%.
Household wealth was 33 times higher among households with a head aged 65 to 74 years, compared with households in which the head was aged 16 to 24 years.
The body says: “Household wealth gradually increased with age, from £15,200 for households with a head aged 16 to 24 years, to a peak of £502,500 for households with a head aged 65 to 74 years.”
Hargreaves Lansdown head of personal finance Sarah Coles says: “The ferocity of the explosion in saving and investing during the pandemic has been laid bare — soaring 25%.
“It rocketed among younger people, who almost tripled their financial wealth, and salted away an average of £800. However, it did little to affect the overall pattern that we build wealth as we go through life, and those who are just starting out are more vulnerable in tougher times.”
Just Group communications director Stephen Lowe adds: “Median household wealth continues to be driven primarily by property with homeowners seeing a significant boost in their wealth during the pandemic period, covered by this data, thanks to rising house prices. But within this general trend, the picture is still mixed.
“There are clear divides between areas where property prices are higher and between demographic groups such as retirees where homeownership is higher.
“Perhaps most notable is the chasm in wealth between homeowners and renters, with those who own outright seeing their median financial wealth grow to £55,300 in 2020-2022 compared to just £900 among renters.”
However, further Office for National Statistics data today shows that households do not feel financially secure, according to its Public opinions and social trends report.
The numbers body found that 86% of people rated the cost of living as one of “the important issues facing the UK today”, this was followed by the economy, at 72%. The housing crisis was rated by 60% of those asked. The top concern was the NHS, coming in at 88%.
Almost 6 in 10 adults, or 57% reported their cost of living had increased in the month to the start of January.
Around 3 in 10 adults who pay rent or mortgage payments reported that they find it very or somewhat difficult to afford to afford those payments. A similar proportion, 32% reported finding it very or somewhat difficult to afford their energy bills.
