North-south wealth gap 'blown away'
Thursday, 08 December 2005 12:00
The idea that the wealthiest areas of England and Wales are in the south is a fiction, according to new figures.
Barclays bank has conducted a study that shows, when the cost of living is considered, 24 of the 50 richest areas are in the north.
"Simply looking at earnings would tell you that it is London and the south-east that is paved with gold. However, this is not the only factor which determines how wealthy any individual actually feels," said Mark Till, marketing director of Barclays Premier Banking.
"If 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."
The new study combines information on salary with the cost of living in each area to find the value of disposable incomes across the regions.
This analysis places areas such as Daventry in the east Midlands, Leeds North East, Rushcliffe near Nottingham, and Newcastle among the wealthiest places in England.
But for rapid house price rises in the last two years there would have been more northern areas in the top 50.
However, while cost of living lowers the effective wealth of most areas in the south-east and London, the sheer scale of the salaries earned by residents of Kensington & Chelsea and Westminster & the City means that these two areas still top the table.
Tatton in Cheshire is the next wealthiest area, with Sheffield Hallam coming in at fourth.
Of the top 50 places with the richest inhabitants: eleven were in the south-east, seven in London, six in Yorkshire, and five in each of the north-west, east and west Midlands. The east of England and the south-west had four each with two more in the north-east and one in Wales.
"With almost half of the top 50 areas in the north, the long held belief that you need to live in London and the south-east to earn a good living is blown away," concluded Mr Till.
Top ten richest areas of England and Wales (by electoral constituency):
1 - Kensington and Chelsea, London
2 - Cities of London and Westminster
3 - Tatton, north-west
4 - Hallam, Sheffield, Yorkshire
5 - Hampstead and Highgate, London
6 - Cotswold, south-west
6 - Beaconsfield, south-east
8 - Leeds North East, Yorkshire
9 - Altrincham and Sale West, north-west
10 - Richmond Park, London
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