Report says it's not so grim 'up north'

The myth of the grim north has been undermined today after a report claimed that it is now home to, on average, a wealthier population than the rest of England and Wales.

In the study by Barclays Private Clients, the wealth management arm of Barclays, it was found that eight of the top 10 wealthiest places in England and Wales are in the north of England.

To assess an areas 'real' wealth, researchers combined detailed salary and cost of living data to establish the actual value of disposable incomes across the regions.

In terms of overall value, topping the table is Tatton in Cheshire – home of David and Posh and Beckingham Palace.

Northern towns boast an average salary of £29,303 – which Barclay's say is worth £41,506 when the cost of living in the area is taken into account. This nudges Sheffield Hallam (£29,150 and £41,289) into second place, and drops Kensington and Chelsea into third place. The London borough, however, rakes in the highest average salary in the region at £40,951, but the capital's cost of living gives no boost to the cash in residents’ pockets. Leeds North-East is fourth at £40,085 (actual £28,300).

Of the top 50 ‘real’ wealthiest places in England and Wales the north-west has 12 and London has just four.

Gordon Rankin, marketing director of Barclays Private Clients, said: “We have carried out a series of research projects in recent years which have focused on income as the primary measure of wealth. Unsurprisingly the results showed the major concentrations of wealth to be in London and the south-east.

“It is clear, however, that this is not the only factor which determines how wealthy any individual actually feels, something which may impact their behaviour. When the cost of living is factored into the equation to give a more realistic measure of purchasing power, the wealth map of England and Wales changes dramatically with the north moving into pole position. Much of this is likely to be related to the disparity in housing costs which take up a much larger proportion of an individual’s salary in the South-East than in the North, giving northerners greater real disposable income.”

Barclays Private Clients (BPC) is the wealth management arm of Barclays, serving one million clients in the UK and around the world in the areas of financial planning, investment and banking.

(GMcG)