Household NetWorth Statistics (Year Ended June2021)

The Office for National Statistics (ONS) released the most recent estimates of household networth for the financial year ending 30June2021. Networth is the total value of a households assets minus its liabilities and is a key indicator of financial health, wealth distribution, and economic resilience.

Key Highlights

• Total household networth reached 13.6trillion, a 5.5% increase from the previous year.
• Average networth per household rose to 291,600, up from 276,600 in 2020.
• Median networth remained lower than the average, at 120,000, illustrating a skewed distribution.
• Homeownership continued to dominate asset composition, accounting for 73% of total networth.
• Networth grew fastest among the lowestincome quintile (7.8% growth), narrowing the wealth gap slightly.

Distribution by Income Quintile

The figures illustrate that while the richest 20% own more than 65% of total networth, the lowest 20% hold just 0.8%.

Asset Composition

Three main asset categories dominate household wealth:

1. Residential property 10.0trillion (73% of total).
2. Financial assets 2.3trillion (pensions, equities, savings).
3. Nonresidential property & other assets 1.3trillion.

Residential Property

Average equity per owneroccupied home rose to 127,400, reflecting price gains during the pandemicdriven housing boom. Rental properties also saw a modest increase in equity, partly due to rising rents.

Financial Assets

Pension wealth grew by 4.1% to 1.6trillion, while net private savings (cash, deposits, and ISA balances) increased by 3.6%.

Liabilities

Household debt continued to climb, reaching 5.9trillion, up 4.3% yearonyear. Mortgages remain the largest liability category (2.8trillion), followed by consumer credit and student loans.

Regional Variation

Networth varies markedly across the UK:

• London Average 544,000; median 322,000.
• South East Average 420,000; median 268,000.
• North East Average 152,000; median 88,000.
• Wales Average 141,000; median 79,000.

What the Numbers Mean

Several broader trends can be inferred from the 2021 data:

1. Wealth concentration remains high. The top 10% of households hold roughly onethird of total networth.
2. Home equity as a safety net Households with mortgage debt saw their networth improve as property values rose, offsetting higher loan balances.
3. Improving financial inclusion Faster growth in the lowest income quintiles networth suggests that cashsaving and pension contributions are reaching more people.
4. Debt risk The continued rise in total liabilities, especially mortgage debt, could expose households to interestrate shocks if rates climb sharply.

Policy Implications

Policymakers can draw on these statistics to shape interventions:

• Housing affordability Support for firsttime buyers and measures to increase supply could reduce the wealth gap tied to property ownership.
• Debt education Programs that improve financial literacy may help households manage rising consumer credit.
• Pension incentives Enhancing autoenrollment and employer contributions could keep the upward trend in pension wealth.
• Regional investment Targeted infrastructure and education funding can help lift networth in lagging regions.

Sources

Office for National Statistics, Household wealth and debt, UK: 2021, released July2022. Available at ons.gov.uk.