Hotspots where households have ‘most and least financial resilience’ identified
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A study into households’ financial resilience has placed Wokingham, Elmbridge and St Albans at the top. At the other end of the spectrum, Hull, Nottingham and Liverpool were at the bottom of the rankings, published in Hargreaves Lansdown’s savings and resilience barometer.
The research breaks down aspects of household finances to a local level, using data such as the Wealth and Assets Survey covering Britain and the Financial Conduct Authority’s Financial Lives Survey. Economic modelling by Oxford Economics was used in the study, which covers several aspects of financial resilience among households, such as savings levels, being on track for retirement and debts.
While incomes form part of financial resilience, housing affordability is also an issue, because areas with a lack of affordability mean fewer people are able to buy a home and build their resilience this way, the report said. Sarah Coles, head of personal finance, Hargreaves Lansdown said: “There’s a vast gulf between the capitals of resilience and the tougher areas where money is stretched and the future looks much harder.
“Among the top 10 most resilient local authorities, 79% of households have enough cash left at the end of the month to be resilient, compared to 54% among the bottom 10.”. Wokingham in Berkshire and Elmbridge in Surrey benefit from high scores for incomes and homeownership levels, researchers said.
