Average household saves £40,000

By THIS IS MONEY
Updated:

 

THE average savings of UK households has risen by 9% in the past year to almost £40,000 – fuelled by the stock market's performance.

A new study has revealed that households can get their hands on £38,909 of cash savings, stocks and shares and releasable household equity.

The analysis by database marketing specialists KDB showed disposable wealth had risen by 3% over the past quarter, with Londoners holding the most - £79,889 on average.

KDB chief analyst Matt Boot said: 'Despite slow growth in the housing market over the last year, put by some organisations at 2% to 3%, stocks and shares have seen a very robust recovery.

'The London Stock Exchange's market capitalisation has risen by more than 23% over the last year, putting more instant access cash reserves at the consumer's disposal.'

Disposable wealth has recently been growing fastest in Scotland and the North, where it rose 4% in the past quarter. Annually Scotland posted the biggest rise of 12%, while Wales and the North West rose 10% and the North East 8%

But the North-South divide remains as the value of disposable wealth was much lower, with Scotland having an average of £22,997, Wales, £24,247, the North West £24,375 and North East £29,875.

The Midlands was the dividing point, with disposable wealth on average £28,981, while in East Anglia it was £47,961, the South East, £60,317 and the South West £59,309.

KDB chief executive Shane Baylis said with disposable wealth growing but consumer spending not following suit, businesses needed to tackle the lack of spending confidence.

He said: 'In this atmosphere it is therefore important for British business to understand trends in the nation's disposable wealth. If it is in decline, this would provide a very strong forward indicator of recession. If growth in disposable assets is still happening, then UK PLC needs to use its marketing skills to persuade the consumer to open their wallet.'

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