But the Resolution Foundation think-tank said younger people could benefit from the partial reversal of the decades-long climb in the value of household wealth.
"The future path of interest rates is very uncertain," Ian Mulheirn, Research Associate at the Resolution Foundation, said.
"The current surge could be a blip, or herald a new era for the UK.
The Resolution Foundation said 2.1 trillion pounds ($2.75 trillion) had been lost in terms of household wealth over the last year after an unprecedented surge in recent decades which took wealth to 17.5 trillion pounds in 2021.
Younger people could also feel the benefit of higher rates on their pension savings, the foundation said.
Persons:
Ian Mulheirn, Mubin Haq, William Schomberg
Organizations:
Bank of England, Seven, abrdn, Trust, Thomson
Locations:
Britain