Tuesday 25 September 2018

Property price surge sees wealth of households hit all-time high

Fall of almost 10pc in debts of households in past year

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Charlie Weston

Charlie Weston

The wealth of households has risen to a new high. Figures from the Central Bank show the average person in the State now has a net worth of €151,000.

This is even higher than some of the peaks reached during the so-called Celtic Tiger years of 2007 and 2008.

The wealth figure is mainly made up of housing assets, and is arrived at by subtracting what is owed on mortgages.

There has also been a fall of almost 10pc in the past year in the debts of households, when calculated as a proportion of disposable income.

This was the largest decline among European Union countries, although Irish households continue to be the fourth most indebted in the EU.

Rising property values and caution by consumers when it comes to borrowing have improved the financial situation of many households.

Property prices are up 12pc in the past year and number crunchers in the Central Bank have worked out that the worth of households went up by €6.7bn in the first three months of this year.

This took the net worth of all the households in the State to €732.3bn.

This works out at an average of €150,768 per head, according to the statisticians.

This represents a rise of 70pc since the low point in June 2012.

Overall household debt remained largely unchanged this year.

Our collective consumer debts total €140.2bn, close to €29,000 per head.

Irish Independent

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