There was a quite startling revelation by the Office for National Statistics this which suggested that one in 10 adults in the UK are now millionaires. Indeed the same report also suggested that one in five university graduates have also gone on to achieve millionaire status. I for one am very sceptical about these UK personal wealth figures which would suggest that on average one in 10 of your friends is a millionaire, probably through their property market exposure. How many millionaires do you know?
Whether or not you believe these figures, they do confirm that the vast majority of wealth in the UK can be attributed to the UK real estate market. As we have mentioned on numerous occasions, this then begs the question, do political parties manipulate the UK property market for the good of their wealthy supporters? If so who is looking after the 90% of people without property market millionaire status?
Sceptical about these figures
Personally I find it very difficult to believe that 10% of the UK population has achieved millionaire status although one thing these figures do is to highlight the value of property and real estate across the country. When you also bear in mind the number of people who have not managed to gain any exposure to the property market, where does this leave them for the future? Who is fighting the battles for those who are unable to climb aboard the property ladder?
Quote from PropertyForum.com : “There is a very useful service on the UK Land Registry website which allows you to check how much properties have been changing hands for in your area. This not only gives you up to date information but it also gives you an idea of how prices have changed over the years.”
Are the rich getting richer?
The basic suggestion in this Office for National Statistics report is that the rich are getting richer across the UK property market. Over the last few days we have had significant media coverage of political donations attributed to lottery winners, business people and those with significant property exposure. Each time we discuss the wealth of the UK nation there is no doubt that property springs to mind on numerous occasions and is for many people the foundation of their long-term financial planning.
Those yet to gain exposure to the UK real estate market will be forced to stretch their finances to stand any chance in the future – although many will miss the boat completely. If those with millionaire status in the UK have a very strong connection to the property market does this place more pressure upon political parties to manipulate the market for the good of their supporters?
Who can afford UK property prices today?
There are number of different reports suggesting that UK house prices are now moving back towards touching distance of their £180,000 average achieved just prior to the 2008 US mortgage collapse. Indeed the situation in London is very different with the average property now worth in excess of £350,000 and rising at a frightening rate.
When you bear in mind that the average UK wage is somewhere between £20,000 and £25,000 per annum, even a couple earning £50,000 per annum between them would probably find themselves struggling to buy an average priced property. Indeed those where perhaps only one income is available will struggle even more to get within touching distance of the UK property market.
We will simply ask the question, who is fighting for the couple on the street who are struggling to climb aboard the UK property ladder?