The number of millionaires in the UK is set to triple over the next couple of years, boosted by the recent rise in house prices, says the Centre for Economics and Business Research.
The independent consultancy CEBR suggests there is likely to be 760,000 millionaires in the UK by 2010, compared with just 230,000 in 2001.
Furthermore, it believes there will be around 1.9m millionaires by 2020.
The figures come ahead of CEBR's release of its annual publication, 'Housing Futures' , next week, suggesting the increase in wealthy Britons is related to the rise in the property market.
Douglas McWilliams, author of the report and CEBR chief executive, says the average UK homeowner who retired in 1990 would have had £62,055 of housing wealth - that is, the difference between the value of his or her house and the borrowing against it. That amount would have increased to £76,505 in 2000, and is set to rise to a whopping £161,113 by 2010.
That said, McWilliams believes a large amount of the 'surplus' cash will go towards plugging the widening pension hole, as net pension assets of a typical household in the UK fell to £62,000 in 2002 from £89,000 in 1999.
Looking towards the future, the CEBR's report says the housing market will be driven by the balance between supply and demand and by the cyclical variations in interest rates.
However, the consultancy deems house price growth will be slowing down in about 11 years time when the number of properties on sale will meet cover the demand.
"By 2015 we would expect the markets to be largely in balance and from the onwards house price inflation should be in line with household disposable income," McWilliams adds.IFAonline
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