BANK ACCOUNTS

Higher Property Prices Result in Higher Savings Balances

Bank balances and property prices go hand in hand across London but according to new research, Hackney is proving to be the exception.

There is a strong correlation between house prices and average savings balances according to research by Halifax bank. However, the London boroughs of Hackney, Newham, Lewisham and Southwark all have the lowest average savings but with above national average house prices.

These are amongst the five areas in the UK with average saving balances of under £4,000, yet property there is also higher than the average for London as a whole.

Residents of Knightsbridge and Chelsea are the biggest savers in London with the average consumer saving bank balance being £9,654.

However they also have the most expensive properties with the average house price standing at £634,637. Incredibly, that is 262% above the UK average of £175,483.

Mole Valley, the Chilterns, Richmond-upon-Thames ad Elmbridge also rank in the top 5 areas with higher savings.

Those living in South Buckinghamshire and St Albans are also in the top ten with the highest savings balances in the country. House prices in these areas are twice as much as the national average.

Nitesh Patel, economist at Halifax, comments;

”Areas with high house prices tend to be populated by people with high savings balances. This is largely what you would expect given that areas with the highest savings and house prices tend to be ones where earnings are also relatively high.”

"Savings play an increasingly important part in the housing market, helping to provide the necessary funds to put down as a deposit when buying a home. Savings also play an significant role when planning for your financial future, so it is important to establish good savings habits as early as possible."

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