Households 'now £17,000 worse off'

The average household is more than £17,000 worse off than they were at the start of the recession, research has shown. A combination of house price and stock market falls have reduced the value of the average household's assets by £17,480, according to financial services firm MetLife. The group, which analysed figures from the Office for National Statistics, said people's household wealth, which includes the value of their home, their pension fund, savings and investments, stood at around £350,600 at the end of last year. But people are still better off than they were in 2008, when £27,000 was knocked off their household wealth due to the problems in the housing market and stock market falls. The average household has 39% of its wealth tied up in property, with the same proportion held in pension funds. A further 11% is held in savings and investments, with the balance made up from personal possessions such as cars and household items. Dominic Grinstead, managing director of MetLife's UK Branch, said: "The end of the recession in the UK is a genuine sign of hope for the future and it is undoubtedly good news that 2009 saw a rise in average household wealth. "However households are still counting the cost of stock market volatility and at £17,480 the cost is not trivial."