‘Family wealth under continued pressure’
With inflation running at 4.5% in the UK (compared to Europe at 3.2%) – whilst the target is 2% - things are hardly likely to get better in the short term.
And on the assets front things are barely much better – despite interest rates being held at their lowest level (0.5%) for some time one of the main barometers of UK wealth – house prices – remains stubbornly low. Recent reports show mortgage approvals are running at half of pre-crisis levels and unsold homes are piling up. Meanwhile, property values fell 4.2% in the three months to May 2011 compared to the same period in 2010.
This means that increasingly families are looking at short term financial survival over their long term family wealth and prosperity. Worrying times indeed.