Over the past year, the increase in interest rates has reduced the wealth of British households by over 2 trillion pounds, primarily due to declining house prices and bond values, which has affected pensions.

The Resolution Foundation think tank suggests that the partial reversal of the decades-long increase in household wealth could be advantageous for younger generations.

Since December 2021, the Bank of England has raised borrowing costs thirteen times in a row, and it is anticipated to continue doing so in order to reduce the highest inflation rate among the Group of Seven nations.

The present surge could be a blip or the beginning of a new era for the United Kingdom, and policymakers should focus on protecting households from erratic swings in fortune caused by external forces.