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Net property wealth is the largest proportion of household wealth (40%)

ended 24. January 2025

A new report from the ONS has been published showing property wealth made up the largest proportion of household wealth (40%), followed by private pension wealth (35%), while net financial wealth (14%) and physical wealth (10%) made up much smaller proportions.

  • Median household wealth in Great Britain was £293,700.
  • The wealthiest 10% of households had household wealth of £1,200,500 or more, while the least wealthy 10% had £16,500 or less.
  • Median household wealth varied by region, with the largest difference seen between the South East (£489,800) and the North East (£179,900).
  • Median household financial wealth increased by £2,100 (25%), in real terms since the April 2018 to March 2020 period, to £10,400.
  • Households who owned their property outright, and households with a head aged between 65 and 74 years, saw the largest increases in median household financial wealth, at £4,300 (8%) and £3,300 (12%), respectively.

5 responses from the Newspage community

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Editor
Aaron Strutt
Product and Communications Director at Trinity Financial
Most of the property wealth is held by older people who have been living in their properties for decades. When Labour came to power, there was hope that they would do something to incentivise older homeowners to potentially downsize and free up some of the larger family homes. This is still something that would really get the property market moving but still has not happened. Many older people resent paying stamp duty even when they downsize and they have lots of equity, meaning many of them don't move. There is likely to be an increase this year in the number of people remortgaging their homes to new lenders rather than sticking with their existing lenders, many will look to release equity funds for home improvements or pay off debts.
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Ross Lacey
Director & Independent Financial Adviser at Fairview Financial Management
The figures aren't surprising given we're generally a nation of homeowners or aspiring homeowners. We've noticed an increasing number of our clients looking to make use of the wealth they've built up in property — both their own home and buy-to-let properties — to fund a more fulfilling retirement. Compared to more liquid sources of wealth, there's much less flexibility when it comes to property - ie. you can't sell a bit and use it; it's all or nothing. The tax situation is also less attractive too. For many clients with high value properties, they are seeing the benefits of downsizing - both in terms of the physical size of the property and the value of what they move to. This is giving them more liquid cash to use now for things that are important to them like travel or passing on inheritance today, whilst also future-proofing things for older age where a smaller home and garden with less maintenance, and perhaps a single storey property are more appealing.
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Kundan Bhaduri
Entrepreneur, Investor and Landlord at The Kushman Group
Net property wealth making up 40% of household wealth highlights the UK’s enduring dependence on homeownership as a primary driver of financial stability. However, the sharp regional wealth disparities—£489,800 in the South East versus £179,900 in the North East—underline a troubling imbalance.

The median wealth figures also raise questions about accessibility and sustainability for future generations, particularly as the wealthiest 10% hold over £1.2m, compared to just £16,500 for the least wealthy households.

This data is a wake-up call for policymakers to address systemic inequality and create pathways for more inclusive economic growth, ensuring wealth creation doesn’t remain confined to property ownership for a select few.
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Graham Cox
Director at Bridging Hub
Property is the dominant asset class because people will always need somewhere to live. And because property investment leverages debt, the gains can far exceed the money put down. Potentially the only threat to that is if population growth reverses due to declining fertility rates, but that seems unlikely.
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Iain Swatton
Director at Exemplar Financial Services
The latest ONS report reveals a staggering 40% of household wealth in Great Britain is tied up in property. Yet, for millions—particularly in later life—this wealth remains locked away, leaving them asset rich but cash poor. This stark divide underscores a growing challenge: how to transform property wealth into a tool for improving lives. For too many, their most valuable asset is out of reach when it could be the key to a better standard of living, financial security, or even supporting loved ones. Innovation in financial solutions is beginning to bridge this gap and while the cost of accessing property wealth remains high, new approaches could help unlock its potential and make wealth work harder for people, not just sit idle in bricks and mortar.