Here's why Brits are feeling richer than they have in years

Jessica Morris
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Britons are feeling richer (Source: Getty)

"Noflation" as well as some mild wage growth means Britons are feeling richer than they have in years.

"UK households are seeing the largest increase in incomes since the recession struck," Chris Williamson, chief economist at Markit, said.

The gains aren't pushing consumers onto high streets across the country just yet, and they're instead using the windfall to pay off their debts.

"Despite the rise in incomes, overall spending levels were largely unchanged, with the survey indicating that households were focusing on paying down debt rather than spending more," Williamson said.

The Markit Household Finance Index climbed to 45.8 in April, up from 45.5 a month earlier.

This implies the mildest squeeze on household finances since the survey began towards the start of 2009, nonetheless a reading below 50 shows there's still some financial stress.

Households benefited from the the strongest expansion of income from employment in the survey’s history, although this was despite the fact top-line growth continues to remain moderate.

Individual's were optimistic about the future trajectory of inflation, which is currently languishing at zero, and is likely to slip into negative territory, meaning people can effectively buy more with their take home pay.

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