UK economy now worth £8.8 trillion

The UK economy is now worth £8.8 trillion, report the Office for National Statistics (ONS).

This is the measure of UK economic activity, including production, distribution, consumption and trade of goods and services.

The figure “represents an increase in cash terms of £493bn, or 6 per cent, on 2014”, said ONS statistician Ole Black.

“This continued the general long-term upwards pattern in net worth except during the economic downturn of 2008-09. Much of this increase came from dwellings, where there was a £355bn rise in value.”

The amount equates to £135,000 per person living in the UK, or around £327,000 per household.

The UK’s total net worth has more than tripled in size between 1995 and 2015, with significant growth in dwellings and not-for-profit institutions.

Household, charities, social clubs, churches and trade unions were worth more than £10.2 trillion by the end of 2015.

In this sector, dwelling held just over half the total, at £5.2 trillion, followed by insurance and pension schemes, at £3.7 trillion.

By contrast, most of the other sectors had a “negative net worth”, meaning “that a sector owed more in liabilities (such as loans) than it owned in assets (such as buildings).”

“By asset type, dwellings again were the most valuable type of non-financial asset. Adding in those belonging to other sectors, their total value came to £5.5 trillion at end-2015, up 7 per cent on the previous year. This was over four times their value in 1995, when they came to £1.2 trillion; the increase was mainly due to increases in house prices rather than a change in the number of dwellings”, said the ONS report.