Cost of credit crunch is £40k per person

Grovelawn Financial News 19/03/2009

← Bank of England base rate at 0.5% | News For March 2009 | Treasury under fire from the National Audit office →

The cost of the credit crunch to every adult in the UK will reach an average of £40,000. This figure represents the loss of wealth wiped out by the credit crunch through the down turn in property value and other equities. The value of most people’s investments has dropped by 28 per cent since the beginning of the credit crunch in July 2007.

The average fall in equities including those in pension funds was 40 per cent from £2.8 billion to £1.7 billion an average loss of £23,000 for each adult.

Price Waterhouse Coopers, have concluded in a recent study that the value of Britain’s housing wealth has fallen by 20 per cent from £4 trillion to £3.2 trillion and that this amounted to around £17,000 for every adult in Britain.

The average house price fall in 2007 to 2009 is 19.7 per cent from a peak of £184,099 in 2007 to £147,746 in February 2009.

The National Association of Estate Agents said they had noticed signs of recovery in the housing market at the top and the very bottom end where prices have been slowly rising.

← Bank of England base rate at 0.5% | News For March 2009 | Treasury under fire from the National Audit office →

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