Summary

Wealth matters: it is a key determinant of households’ living standards, and the size and distribution of wealth affects people’s perceptions of inequality both between and within generations. But despite its importance, there is little reliable data on household wealth in Britain. Today’s Wealth and Asset Survey (WAS) release is Resolution Foundation's first comprehensive look at family balance sheets during the Covid-19 pandemic – specifically the period from April 2020 to March 2022 (referred to as 2020-22 hereafter). This data provides crucial context in understanding the state of household finances on the eve of the cost-of-living crisis. 

Here are five key things to know:

1. During the pandemic, total household wealth nudged up to reach a new peak

2. Absolute wealth gaps had been widening, but this trend reversed in the latest data

3. Rapid house price growth outside London and the South East has acted to shrink some of Britain’s geographical wealth gaps

4. Intergenerational wealth inequality rose again

5. This release isn’t the last word when it comes to household balance sheets