The wealth of Irish households is now at its highest level since late 2008, new figures from the Central Bank show, thanks to rising property prices.

According to figures from the Central Bank, the net wealth of Irish households rose to € 600.8bn, or € 130,331 per capita, during the fourth quarter of 2014, up by 4.3 per cent. While rising property prices were a key driver in resurging household wealth, the figures show that Irish households are now actually less dependent on property, and financial assets account for a higher proportion of wealth. Some €1.24bn was invested in financial assets in Q4, the highest level since Q3 2013. During Q4 2014, households largely used their savings to reduce debt (€ 1.4 billion) and to invest in home renovations (€ 1.5bn). Household wealth has now risen by 33.2 per cent since its lowest level in Q2 2012.

As the wealth of Irish households continues to rise, debt levels continue to fall. During the fourth quarter, household debt fell € 157bn or € 34,069 per capita, down by 1.6 per cent over the quarter. Since its peak in Q3 2008, the overall level of household debt has fallen by 22.9 per cent.

Also on the decline was debt as a proportion of disposable income, which fell by 3.7 percentage points, down to 170.1 per cent. This is the lowest level since Q4 2005.