For those with a long enough memory, this time’s recovery is likely to feel quite anaemic, relative to those in the past. A second potential explanation may lie in the fact that aggregate activity measures are sometimes a poor proxy for the average person’s income. GDP is a measure of the size of the economic pie, a pie that has grown substantially larger since 2009. But so too has the number of people eating it. Taking the two together, GDP per head has risen significantly more slowly than aggregate GDP since 2009. Indeed, GDP per head today is only around 1% above its pre-crisis peak (Chart 3). GDP measures income from all UK-based activities. But not all of that income flows to UK citizens. Some flows abroad to foreign owners of UK assets and some income is earned domestically on UK investments abroad. The amount of net income flowing overseas currently stands at around 3% of GDP. This is a record high. If we take net overseas income out of GDP, to give a measure of net national disposable income per head, it has recovered even more slowly than GDP per head. It is currently at levels little different than its pre-crisis peak (Chart 3). National income per head suggests there has scarcely been any recovery. Moreover, not all the income earned nationally flows directly and immediately to households. For example, some accrues to companies who may save it rather than distributing it to households as wages or dividends.
20  16-24 45-54 75-84  25-34 35-44 55-64 65-74 85 and over £ million 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 -500,000  Sources: Sources: Wealth and Asset Survey, ONS, and Bank calculations. BIS central bankers’ speeches  Chart 22 – Proportion of individuals by age that rent 1977  1987  1997-98  2007  Per cent  Chart 23 – Proportion of individuals by age that have a mortgage Per cent  70  70  60  2014  60  50  50  40  20 10 0  40  1977 1987 1997-98 2007 2014  30  25 30 35 40 45 50 55 60 65 70 75  80  30 20 10  25 30 35 40 45 50 55 60 65 70 75  0  Source: ONS. Source: ONS. Chart 24 – Real income before and after housing costs  Chart 25 – Rent as proportion of disposable income in 2014*  Indices 07/08 = 100  104 102 100 98 96  Median real income before housing costs Mean real income before housing costs Median real income after housing costs Mean real income after housing costs  2007/08  2009/10  2011/12  Sources: HBAI and Bank calculations.