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Property boosts wealth figures

The net wealth of the average UK adult rose to £70,000 in 2002 from £64,000 in 2000, according to a report from IBM Business Consulting Services.

The report, Personal Wealth in Britain, says that while people have lost £182bn in the stockmarkets since 2000, this has been outweighed by a £245bn increase in the value of properties over the period.

The net effect is that IBM estimates the average wealth of UK adults has increased by 10 per cent with property&#39s share of total assets increasing from 46 per cent to 56 per cent.

With the increasing importance of property, the percentage of total assets considered liquid has dipped to 23 per cent from 30 per cent in 2000. The biennial report issues a warning that the nation is becoming increasingly equity-rich but cash-poor and that the financial services industry needs to radically change the help it offers consumers to manage their wealth.

IBM predicts a boom in markets such as current account mortgages and equity-release schemes, with providers rushing to satisfy the increasing demand.

Senior consultant Tim Blaxall says: “On an individual basis, the wealth of the nation has changed dramatically. The financial services sector needs to transform the services it offers to include new ways to help people manage their increasingly illiquid but growing wealth. Only around 23 per cent of most people&#39s assets are investible or liquid, a figure that will decrease given the nature of the world&#39s stockmarkets.”


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Business up by 24% at Swiss Life

Swiss Life has reported an increase of 24 per cent in new business written during 2002, up to £53m from £42m in 2001. The provider says during the last year it enjoyed substantial growth in both critical illness and income protection sales. Managing director Brian Hurd says the fact IFAs have stuck with Swiss Life […]

Morley Fund Management – Morley High Income Property Fund

Friday, 14 March 2003 Type: Unit trust Aim: Growth by investing in direct property, property related corporate bonds and cash Minimum investment: Lump sum £10,000 Investment split: Direct property 75%, property related corporate bonds 20%, cash 5% Isa link: No Pep transfers: No Charges: Initial 5%, annual 1.5% Commission: Initial 3% Tel: 0800 5874561


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