London may boast the highest average disposable incomes in the UK, but it also has the highest cost of living and the lowest average savings levels
There are many benefits to living in the capital but it’s not without its drawbacks too. The annual London Factor research from Halifax outlines the current financial and social advantages and disadvantages of living in the capital city.
Taking account of a wide range of factors including: the economy, housing market, employment and earnings, as well as various quality of life factors, such as life expectancy, the environment, and education, the latest research finds London offers a broad mix of highs and lows.
Londoners in full time employment benefit from earnings which average 32% higher than the UK monthly average of £2,774, and the average Londoner’s disposable income is 28% higher than the national average.
However, the cost of London living is greater than anywhere else in the country; and Londoners have the lowest levels of savings relative to annual gross earnings (22% compared to the UK average of 29%).
Martin Ellis, Halifax Economist, said:
“As a leading global city, London provides major economic, social and cultural benefits not just to those who live there but also for the rest of the country. Employment growth has been higher than elsewhere in the UK in recent years, while average earnings in the capital are 32% higher than the UK average.
“On the other hand, living in London is more expensive than in any other region. So perhaps it not surprising Londoners, on average, also have the lowest savings in proportion to average earnings in the UK.”