Average wealth for UK households has slumped by 17.5% over the past four years, according to a new St James’s Place poll of 6,000 adults. The drop, from £126,482 in 2025 to £104,329 this year, marks the steepest decline the survey has recorded since it began.

17.5% Wealth Drop Highlights Hardest‑Hit Income Groups

The poll reveals that the decline is not confined to any single income bracket; even higher‑earning households report shrinking savings, investments and possessions. Respondents cited rising essential costs, stagnant wages, higher rents and larger tax bills as the main culprits, according to the survey.

St James’s Place Survey Captures 6,000 Voices on Financial Sentiment

With a sample size of 6,000 people, the study found that twice as many participants say their finances have worsened compared with a year ago. The research measures wealth based on savings, investments and physical assets, deliberately excluding property and pensions to focus on liquid and semi‑liquid holdings.

Bank of England Faces Pressure as Inflation May Top 6%

Economists note that the Bank of England is under mounting pressure to raise interest rates after inflation surged toward the 6% mark, a development highlighted in the poll’s commentary. Higher rates could further erode household cash balances, compounding the wealth loss documented by St James’s Place.

War in Iran and Global Turmoil Add to Household Uncertainty

The poll links the wealth decline to broader geopolitical instability, specifically mentioning the ongoing war in Iran as a factor that has driven up energy and commodity priecs.. these external shocks, combined with domestic cost‑of‑living pressures, have left many families scrambling to protect their finances.

Will the Bank of England Raise Rates Further?

One unanswered question is whether the central bank will continue to tighten monetary policy despite the already‑strained household balance sheets. The poll does not provide a clear forecast, and analysts remain divided on the likely path forward.

According to the St James’s Place report ,financial planning and preparedness are now more critical than ever for protecting against future shocks . the findings underscore a growing sense of fiscal anxiety among UK residents as they navigate an increasingly volatile economic landscape .