By Marcus Leach
Data from new saving and investing website, www.InvestorBee.com, which analyses saving habits from over one million people in the UK, has discovered that it would currently take the average Londoner over 19 years to save for a house deposit in the capital.
The data reveals that the average Londoner earns £45,758 and saves approximately 9.6% (£4,379) of their salary each year, which includes money for retirement. With the average house price in Greater London standing at almost £430,000 it would take over 19 years to save a 20% deposit, assuming all saving is for that one objective.
Despite Greater London’s reputation as the wealthiest place in the UK, it seems that the high cost of living is preventing high savings, with Londoners saving an average of just 9.6% of their salary — putting them in 35th place out of 50 counties. London is also the place where people are most likely to name property as their number one saving objective, with 21% saying that saving up to buy a property or pay-off a mortgage is their primary goal.
In England, the Home Counties dominate the leader board; the top-ranking area is Huntingdonshire where residents save 11.6% of their salary on average. In Wales, Glamorgan ranks highest, with savers putting away 9.4% of their salary. County Antrim residents save the most in Northern Ireland at 11.0%.
But two of the UK’s three top-ranking counties for savings are in Scotland, where savers in Perthshire and Kinross-shire are setting aside a staggering 12.1% of their salaries for a future date, while Aberdeenshire and Kincardineshire residents save 11.2%.
People have different reasons for saving, with almost a quarter (22%) stating that their number one saving objective is for retirement. Worryingly, a quarter of people (22%) admit to not saving at all. The proportion of non-savers is most apparent in The North and Yorkshire where nearly a third (30%) people are unable or unwilling to save anything. After retirement, the next most popular saving goal nationwide is an emergency fund, with 12% of UK residents aiming to build up a financial buffer as protection against the uncertainty of the current economic climate.
“On average across the UK, where Brits choose to save, they’re putting aside 9.7% of their salary. Retirement and emergency funds are currently the highest priorities for savers," Graham Mannion, managing director and founder of InvestorBee, said.
"But with the current rate of inflation at over 5%, standard savings accounts are not preserving long-term spending power. So, should UK savers be looking elsewhere to make the most of their money?”
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