Areas in which people have a high balance in their savings accounts have generally correlated with regions where property prices tend to be high. Recent research from Halifax, however, has found several areas which buck this trend.
For example, the lowest average savings account balances are held by people living in the London borough of Hackney, where people have around £3,224 in their accounts. However, property prices for an average house in Hackney stand at 74 per cent above the national average and six per cent above the Greater London average.
But not all London boroughs break the trend. Kensington and Chelsea are home to some of the nation’s biggest savers, with the fourth highest UK average balance at £9,654. Alongside this, the borough boasts the highest average property price of £634,637 - 262 per cent above the UK average.
Nitesh Patel, economist at the Halifax, commented, “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.”
