- 13
- Dec
The richest 2 per cent of adults in the world own half the global household wealth. This is according to a study by the Helsinki-based World Institute for Development Economics Research of the United Nations University (UNU-WIDER). “World Distribution of Household Wealth,” is the first study to cover all countries and all major components of household wealth, including financial assets and debts, land, buildings and other tangible property.
Despite the predictions of doom, UK is among the richest people in the world. Much of this is due to the recent increase in housing prices. Economists are at a loss to explain why the banks are unrestrained when lending loans to UK consumers. However, when compared to the international market, UK consumers are in one of the best positions to use their home equity to build wealth.
Many UK consumers have benefited from the trend. The UK economy is healthy enough to attract 23 of the world’s billionaires. The rich migrate to London because it is safe and politically stable. The courts protect property rights, and the undefined class system protects their lifestyle. This is based on research by Forbes Magazine.
Projections from companies like Oxford Economic Forecasting, the National Housing Federation, predict a 40 per cent increase in homes in the South East. This allows homeowners to reach the demi-wealthy income level, even though their income is not growing. These people are becoming a part of the ‘land rich-cash poor’ section of the population. However, their equity is secure in their homes, at least for the next few years.
