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Study Reveals Financial Resilience Gaps Across UK Households

by Celia

A new study has highlighted significant disparities in financial resilience across the UK, identifying Wokingham, Elmbridge, and St Albans as the strongest areas, while Hull, Nottingham, and Liverpool were found at the bottom of the rankings.

The findings, published in Hargreaves Lansdown’s Savings and Resilience Barometer, analyze local household financial resilience based on key data sources, including the Wealth and Assets Survey and the Financial Lives Survey by the Financial Conduct Authority. Economic modeling by Oxford Economics was also incorporated into the research.

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The study focuses on several indicators of financial resilience, such as savings, retirement preparedness, and levels of debt. It also takes housing affordability into account, with the report noting that areas where housing is less affordable tend to see lower homeownership rates, hindering the ability of households to build long-term financial resilience.

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Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, commented: “The gap between the most and least resilient areas is vast, with some regions facing real financial challenges. In the top 10 most resilient areas, 79% of households have enough money left each month to build financial security, compared to just 54% in the bottom 10.”

Wokingham, in Berkshire, and Elmbridge, in Surrey, performed particularly well due to high income levels and homeownership rates. St Albans in Hertfordshire ranked third, driven by high average earnings and a notable proportion of residents with investments.

At the opposite end, Hull ranked lowest due to relatively low disposable incomes, limited emergency savings, and underwhelming pension savings among residents.

In Northern England, Ribble Valley emerged as the most financially resilient region, ranking 39th overall. Known for its rural charm and affluent communities, Ribble Valley scored highly for savings, pensions, and homeownership. South Lakeland and Harrogate also fared well, securing 43rd and 46th place, respectively.

Bromsgrove, in the Midlands, topped the region for financial resilience, coming in at 28th overall. Stratford-upon-Avon followed closely in 29th, with Rushcliffe (33rd), Harborough (34th), and Warwick (44th) also ranking high.

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In Scotland, East Dunbartonshire claimed the highest resilience ranking, placing 24th overall.

This detailed analysis sheds light on the significant financial differences across UK regions and underscores the challenges some households face in building long-term financial stability.

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