The cost-of-living crisis has hit hardest in the North East, where savings are lowest and set to fall the most this year.
In addition, London and the South East are struggling with rising property prices and mortgage payments.
According to the HL Savings & Resilience Barometer, January 2023, areas with lower average wages, such as Yorkshire and The Humber, are also suffering as the proportion of people with enough cash left at the end of the month drops.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “No corner of Great Britain has escaped the horrible squeeze on spending in the past year – and there’s still more pain to come.” She added that regions like the North East, Yorkshire and The Humber, and the North West were vulnerable due to their low savings.
As mortgage rates rise, homeowners face the double blow of soaring house prices and increasing mortgage payments.
This issue is particularly pressing in areas with higher property prices, such as London, the South East, and the East of England.
In these areas, higher mortgages often coincide with larger average wages, but rate hikes could be disastrous for those who stretched themselves to buy expensive properties.
Coles warned that other regions, including the East Midlands, West Midlands, and Scotland, are also at risk, as they have lower wages but higher mortgages.
“In these areas, mortgages are already likely to be more difficult to cover, which doesn’t bode well for anyone having to remortgage onto a higher rate,” she said.
The cost-of-living crisis, fueled by runaway inflation, has ravaged the amount of money people have left at the end of the month.
By the end of 2023, the proportion of people with enough surplus cash to be resilient will drop in every region, falling furthest in London, the South East, the South West, and Scotland.
