Wealth loss from credit crunch shrinks
Share market recovery reduces losses to £36,000 per head
A recovery in share and house prices has stemmed the wealth loss per UK
household from £40,000 to £36,000 per adult.
The total loss from the credit crunch is set to reduce from £1.9 trillion in
March to £1.7 trillion in May, according to analysis from PricewaterhouseCoopers
reported in Consultant News.
Losses suffered by households in the credit crunch are still dramatic –
wealth is down by as much as 25 per cent since the peak in July 2007. A total of
120 per cent of GDP has been lost from household wealth since that date.
Average UK house prices are down by around 20% from their peak, wiping an
estimated £800bn off valuations in aggregate. The sharemarket has fallen just
over 30% since their peak in mid-2007, wiping £900bn off the value of equity
portfolios.