UK Wealth Hit by Surging Rates, but Young People Could Benefit
The surge in interest rates in the UK has caused a loss of over £2 trillion in household wealth due to falling house prices and bond values, impacting pensions, according to a report by the Resolution Foundation. However, the think-tank suggests that younger people may benefit from the reversal of the long-standing increase in household wealth. The Bank of England is expected to continue raising rates to combat high inflation. The decline in wealth could exacerbate generational inequality caused by rising house prices, but higher rates may also benefit younger people's pension savings.