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Study Identifies UK Hotspots of Financial Resilience and Strain

by Celia

A recent study on household financial resilience has identified the areas in the UK where residents are most and least financially secure. Wokingham, Elmbridge, and St Albans topped the rankings, while Hull, Nottingham, and Liverpool were found to have the lowest levels of financial resilience.

The findings, published in Hargreaves Lansdown’s Savings and Resilience Barometer, offer an in-depth look at regional financial stability. The study incorporates data from sources including the Wealth and Assets Survey and the Financial Conduct Authority’s Financial Lives Survey, with economic modeling provided by Oxford Economics.

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Key factors contributing to financial resilience include savings levels, retirement readiness, and debt management. While income is a crucial factor, the report also highlights housing affordability as an important issue. In areas where housing is less affordable, fewer residents are able to buy homes, which limits their ability to build long-term financial resilience.

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Sarah Coles, head of personal finance at Hargreaves Lansdown, noted the stark contrast between the areas with the highest and lowest levels of resilience. “There’s a vast gulf between the capitals of resilience and the tougher areas where money is stretched and the future looks much harder,” Coles said.

According to the study, 79% of households in the top 10 most resilient areas have enough disposable income at the end of the month, compared to just 54% in the bottom 10. Wokingham, located in Berkshire, and Elmbridge in Surrey performed well due to high incomes and homeownership rates. St Albans, Hertfordshire, ranked third, with strong average earnings and a relatively high proportion of investors in the area.

In contrast, Hull, ranked at the bottom, had lower-than-average savings, emergency funds, and pension savings, with many households struggling to make ends meet each month.

Focusing on northern England, the Ribble Valley emerged as the region with the strongest financial resilience, ranking 39th overall. The picturesque, rural area excelled in homeownership, savings, and pensions. South Lakeland, ranked 43rd, also performed well in terms of savings and pensions, while Harrogate ranked 46th due to favorable income levels.

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In the Midlands, Bromsgrove was identified as the region with the highest financial resilience, ranking 28th overall. It stood out for its performance in savings, pensions, and homeownership. Stratford-upon-Avon (29th), Rushcliffe (33rd), Harborough (34th), and Warwick (44th) also performed well.

In Scotland, East Dunbartonshire topped the financial resilience rankings, placing 24th overall.

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