Britons saw the value of their wealth dive by 12% during 2008 on the back of steep house price falls and sliding equity markets, research has showed.
The collective wealth of all UK households dropped from £6.736 trillion at the end of 2007 to £5.921 trillion at the end of last year, according to Halifax.
The high street bank said it was the first time a decline had been recorded since 2001.
The fall was largely driven by a steep drop in property values, with around £384 billion wiped off the value of people's homes during the year, leaving them collectively worth £3.693 trillion.
But the reduction in property wealth could be even greater as Halifax based the research on the Communities and Local Government house price index, which recorded a 9% slide during the year - nearly half the 17% it reported for the same period.
Not only did the value of people's housing wealth fall, but the value of their financial assets, such as shares, also dropped by 9% or £381 billion in 2008 as global stock markets dived in response to the credit crunch.
The FTSE 100 Index lost 31% of its value during the year, the worst annual performance in its 24-year history.
The problem of falling asset values was made worse by the fact that people continued to take on more debt during the year.
The value of outstanding mortgages on property rose from £1.187 trillion to £1.225 trillion in 2008.
At the same time, unsecured borrowing, such as credit cards, overdrafts and loans, rose by £12 billion to £234 billion.
Source: Channel 4 News