UK house prices surge, wealth gap widens
Middle-income and well-off households experienced windfall gains amid the coronavirus pandemic, data from the Resolution Foundation think tank showed on Monday. This was mainly attributed to a boom in Britain’s housing market and gains in global share prices.
Despite experiencing the sharpest economic slump in more than 300 years in 2020, the average British household wealth rose by 7,800 pounds ($10,800) caused by an increase in asset prices and lower day-to-day spending.
The middle class recorded the biggest gain, with net assets up by 9% to 80,500 pounds per adult due to a sharp increase in house prices.
British house prices increased 9.9% in the year to March, the biggest gain since 2007.
The 10% wealthiest households recorded a lower percentage increase but the biggest gain of 44,000 pounds per adult. Meanwhile, the 30% least wealthy had an average wealth gain of 86 pounds.