independent

Sunday 20 April 2014

Household wealth grows at fastest pace in 7 years

DUBLIN city
aerial view
dublin bay...HN
Dublin city

HOUSEHOLD wealth rose at its fastest pace in seven years in the third quarter of last year, thanks to rising property prices in Dublin.

Debt among Irish households also continued to fall between July and September, but it remained high by international standards.

Household net worth rose 3.5pc during the third quarter, marking the largest increase since the final three months of 2006, according to the latest data from the Central Bank.

The turnaround in house prices, seen largely in the capital, helped push up the value of housing assets during the period by €12.6bn.

Reductions in debt and the increase in the value of financial assets also contributed towards the increase in net worth.

Household debt continued to decline during the final three months of last year, falling to €168.6bn, a drop of €1.6bn over the quarter.

DEBT

The data also showed the household debt has become more manageable, with debt to disposable income falling by 2.1 percentage points. Debt to total assets fell by 0.8 percentage points.

The decline was driven by both the decrease in debt and the hike in the value of household assets.

Government debt continued to rise during the third quarter of last year.

It reached €231.2bn – up €2.2bn compared with the previous quarter.

Irish Independent

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