- Average wealth has increased by 59% in the past decade while earnings have grown just 19%
- Even among the wealthiest the value of assets has grown by 64% compared with 20% for salaries
The growth in average wealth from assets including property and investments has been three times higher than the growth in average earnings over the past decade, new analysis* from Handelsbanken Wealth & Asset Management shows.
Figures show people are being out-earned by their homes and other investments, with average wealth rising 59% over the past decade compared with 19% growth in salaries over the same period, according to Handelsbanken Wealth Management & Asset Management’s analysis of the latest Government data on Britons’ wealth and assets and earnings.
Average wealth for Britons is estimated at £575,948 after a decade of growth from £361,831, with house price rises as well as increases in pensions, investments and physical wealth including possessions all appreciating in value since 2010. By contrast, average earnings have only increased to £31,840.
For the wealthiest 25% of the population, the growth in assets has been even more impressive – they now own wealth estimated at £733,800 compared with £447,900 a decade ago. They have seen their wealth increase 34% faster than the British average, while their salaries have increased 22% faster.
Of course, the growth in wealth has not been shared equally throughout the country – the wealthiest people in London have seen their wealth grow by 77% over the period to an average £902,400, compared with £495,200 in 2010.
The top 25% wealthiest in the North East have only seen growth of 30% during the same period, taking them to an average £459,500, which equates to an increase of £105,300. Growth among the top quartile of wealthiest people in the South East was 77% during the same period, compared with 69% in the East of England and 66% in the South and Wales. The North West saw growth of 45%.
PK Patel, Head of Wealth Management at Handelsbanken Wealth & Asset Management, said: “Earnings growth has on average been constrained over the past 10 years, with most people relying on their houses, investments, and possessions to boost their wealth.
“It is fascinating to see the gulf between the increase in asset values and the increase in average earnings over the past decade, and is instructive for advisers and their clients on how to plan their finances and assess their wealth.
“No matter how your total wealth is made up, it’s important to have a clear plan on how you want to use it for your own future and for the benefit of other family members.”
Table one: wealth and salary growth for the richest quartile by UK region, 2008-10 vs 2018-20
| Region | Top quartile average wealth | Top quartile average salary | ||||
| 2008-10 | 2018-20 | Growth | 2010 | 2020 | Growth | |
| North East | £354,200 | £459,500 | 30% | 27736.5 | £33,108 | 19% |
| North West | £387,400 | £561,400 | 45% | 29272 | £35,256 | 20% |
| Yorkshire & the Humber | £376,300 | £556,300 | 48% | 28591.5 | £33,890 | 19% |
| East Midlands | £415,500 | £617,900 | 49% | 29442 | £35,204 | 20% |
| West Midlands | £399,200 | £621,500 | 56% | 28654.5 | £35,003 | 22% |
| East of England | £511,500 | £864,700 | 69% | 33006.5 | £38,938 | 18% |
| London | £495,200 | £902,400 | 82% | 39157.5 | £47,423 | 21% |
| South East | £597,100 | £1,058,000 | 77% | 34775.5 | £40,834 | 17% |
| South West | £485,300 | £805,500 | 66% | 28887 | £34,434 | 19% |
| Wales | £383,900 | £635,700 | 66% | 27845.5 | £33,453 | 20% |
| Scotland | £364,000 | £584,800 | 61% | 30072.5 | £36,889 | 23% |
| Great Britain | £447,900 | £733,800 | 64% | 31401 | £37,625 | 20% |
Table two: average wealth and salary growth by UK region, 2008-10 vs 2018-20
| Region | Average wealth | Average salary | ||||
| 2008-10 | 2018-20 | Growth | 2010 | 2020 | Growth | |
| North East | £271,385 | £382,379 | 41% | £22,566 | £27,343 | 21% |
| North West | £303,074 | £452,151 | 49% | £24,074 | £28,782 | 20% |
| Yorkshire & the Humber | £310,994 | £444,366 | 43% | £23,433 | £28,072 | 20% |
| East Midlands | £337,125 | £473,284 | 40% | £24,294 | £28,997 | 19% |
| West Midlands | £322,423 | £471,564 | 46% | £23,733 | £29,399 | 24% |
| East of England | £411,000 | £680,549 | 66% | £28,095 | £33,065 | 18% |
| London | £395,352 | £678,545 | 72% | £37,746 | £42,565 | 13% |
| South East | £491,410 | £827,565 | 68% | £29,940 | £35,040 | 17% |
| South West | £382,253 | £630,258 | 65% | £23,980 | £28,258 | 18% |
| Wales | £326,424 | £515,767 | 58% | £22,381 | £26,995 | 21% |
| Scotland | £301,504 | £464,685 | 54% | £24,527 | £30,097 | 23% |
| Great Britain | £361,831 | £575,948 | 59% | £26,751 | £31,840 | 19% |
