Data from new saving and investing website, InvestorBee, 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.
InvestorBee’s 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.
The property ladder
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.
The difficulty for Londoners establishing themselves on the property ladder is further highlighted when compared against some of the UK’s largest regions:
North
Average salary: £27,859
Average saving rate: 10.6%
Average house price: £153,025
Minimum time to save 20% deposit: 10.4 years
East Anglia
Average salary: £34,443
Average saving rate: 9.6%
Average house price: £196,911
Minimum time to save 20% deposit: 11.9 years
Northern Ireland
Average salary: £24,120
Average saving rate: 10.3%
Average house price: £148,292
Minimum time to save 20% deposit: 11.9 years
East Midlands
Average salary: £28,289
Average saving rate: 9.8%
Average house price: £169,411
Minimum time to save 20% deposit: 12 years
North West
Average salary: £26,368
Average saving rate: 10.0%
Average house price: £163,030
Minimum time to save 20% deposit: 12.6 years
Yorks & Humber
Average salary: £25,905
Average saving rate: 9.6%
Average house price: £166,228
Minimum time to save 20% deposit: 13.3 years
Wales
Average salary: £25,233
Average saving rate: 9.3%
Average house price: £160,328
Minimum time to save 20% deposit: 13.7 years
Scotland
Average salary: £25,257
Average saving rate: 9.4%
Average house price: £163,418
Minimum time to save 20% deposit: 13.8 years
West Midlands
Average salary: £27,432
Average saving rate: 9.4%
Average house price: £183,551
Minimum time to save 20% deposit: 14.2 years
South East
Average salary: £37,230
Average saving rate: 9.4%
Average house price: £291,268
Minimum time to save 20% deposit: 15.6 years
South West
Average salary: £28,167
Average saving rate: 10.1%
Average house price: £236,250
Minimum time to save 20% deposit: 16.6 years
Greater London
Average salary: £45,758
Average saving rate: 9.6%
Average house price: £429,912
Minimum time to save 20% deposit: 19.6 years
Where are the nation’s highest savers?
By analysing the InvestorBee database of savers across the homes counties in the UK, the report reveals that the UK’s top savers are in Scotland.
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%.
Across the UK, saving for retirement is top of mind
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.
Graham Mannion, managing director and founder of InvestorBee, says:
“On average across the UK, where Brits choose to save, they’re putting
