Housing wealth

There has been lots of discussion recently about how much more the ‘1%’ earn than everyone else. There has been less attention paid to how much more they own.

In fact, wealth (what people own) is more unequally distributed than income.

Wealth vs income distribution

 

This chart gives you an idea of just how unequally distributed wealth is in the UK.

Wealth distribution

Wealth includes things like pensions and stocks. If we just concentrate on housing wealth (Total housing wealth in the UK stands at something like £3,375 billion) we see a similar picture. Here is how housing wealth is distributed.

Distribution of housing wealth

 

House prices have increased significantly, even adjusting for inflation, since the 1970s as this chart shows.

House prices adjusting for inflation

 

However, this has not uniformly benefited all homeowners.

Rises in house prices for mean and median

 

But has hugely benefitted those who own expensive houses.

Rise in value of prime accomidation

 

Many of whom are not born in the UK.

Country of origin of prime accommodation buyers

Advertisements

2 thoughts on “Housing wealth

  1. Very nice. Thanks. Can you clarify please (i) date to which data refers ? 2012??? (ii) Is the property wealth (actually housing, according to the text) chart the net wealth (house value-debt) or gross house value? I suspect it’s net.

  2. Sorry. Good points Michael.

    The fist chart comes from this report for Birmingham university http://www.birmingham.ac.uk/Documents/research/SocialSciences/Key-Facts-Background-Paper-BPCIV.pdf their wealth data is from the ONS’s report looking at wealth in 2008

    Yes, it is net value. It’s also from the ONS although I made the chart myself. More detail on their data here http://www.ons.gov.uk/ons/rel/was/wealth-in-great-britain-wave-2/2008-2010–part-2-/index.html

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s