Britons are '£40,000 poorer' due to credit crunch

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The combination of falling house prices and stock market slides has wiped around £1.9 trillion off UK household wealth since July 2007, according to PricewaterhouseCoopers.

As a result, it said, the average person had seen the value of their wealth drop by around 28% since the credit crunch first started.

House prices have fallen by 20% since July 2007, reducing collective household wealth by an estimated £800 billion.

At the same time, sharp stock market falls of 40% have wiped out a further £1.1 trillion of people's wealth.

Overall, the total value of UK household wealth has dropped from £6.8 trillion in July 2007 to £4.9 trillion last month.

The group estimates that the fall in wealth during the past 21 months is equivalent to around 130% of gross domestic product.

It warned that, based on research into the link between changes in household wealth and expenditure, the £1.9 trillion drop in the value of people's assets could reduce UK expenditure by around 5% or £45 billion - the equivalent of 3% of GDP.

John Hawksworth, head of macroeconomics at PricewaterhouseCoopers, said: "The estimated loss of wealth of £1.9 trillion would equate to around £40,000 on average per adult in the UK, although clearly these losses will vary considerably across the population.

"The knock-on effect of this level of wealth destruction will result in significantly more belt-tightening and reduced spending by households over the next year and this situation could be exacerbated by expected further falls in house prices over this period."