How we've doubled our wealth in just a decade

Driven by the sustained property boom, our net wealth - the amount left after all debts are deducted - increased from £2.795 trillion at the end of 1996 to £6.336 trillion ten years on.

Although the bulk of that extra money is tied up in bricks and mortar, it has allowed millions to borrow against the value of their homes to enjoy exotic holidays, new cars, designer clothes and cosmetic surgery.

Research by Halifax Financial Services found that property, rather than savings or salaries, was behind the 127 per cent rise in wealth.

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In fact, average pay rose by 52 per cent over the same period, while retail prices went up 30 per cent.

Although many believe the country feels and appears richer than a decade ago, clouds are gathering.

The hangover from the spending binge is being seen in record levels of personal debt - with fears that house price rises could stall.

Halifax said personal debt rose by £802 billion - 164 per cent - in the past decade to nearly £1.3 trillion.

This has created casualties, with more bankruptcies, more debtors in court over unpaid loans and more families losing their homes to repossession.

Separately, there is evidence that the gap between rich and poor has widened.

The Organisation for Economic Co-operation and Development, which suggested that the boom times may be over, said this week: "The wages of those at the top of the earnings distribution have increased much faster than the rest of the population."

Halifax said the nation relies much more heavily on the equity tied up in property than ten years ago. This now accounts for 43 per cent of household wealth, up from 28 per cent in 1996.

On the other side of the equation, money held in investments, pensions and savings accounts has become less significant. Their share of net wealth has come down from 72 per cent to 57 per cent.

However, the sums involved are still significant.

The level of personal savings doubled to £960 billion at the end of last year. And Halifax predicts cash holdings will break the £1 trillion - £1,000 billion - barrier this year.

The greater feeling of wealth has boosted consumer optimism and spending, so fuelling growth.

Halifax chief economist Martin Ellis said: "The financial position of households in total has strengthened substantially over the past decade.

"Whilst much has been said about the rise in debt, it is important to note that the value of households' assets has risen at a faster pace."

A separate study by Alliance & Leicester found a sharp North-South divide with 39 per cent of the nation's households south of Watford holding 51 per cent of the country's wealth.

It also found that two thirds of personal wealth is in the hands of the over 55s - while the under 35s own less than a tenth.