Only 39% of Londoners currently own an ISA, they are lagging behind other parts of the UK. 44.3% of all adults across Great Britain currently hold an ISA, approximately 22.1 million individuals.
The relatively low proportion of ISA ownership in the capital cannot be entirely explained by the higher housing costs in the capital, as the average Gross Disposable Household Income** in London is 36% higher than the UK average.
It is more likely that it is the relative youth of savers in London, compared to other parts of the country, and the high time costs that are involved in opening an ISA that puts off London’s notoriously time-poor population.
Paolo Galvani, Chairman and Co-founder, explains: “Londoners are least likely to own an ISA and that’s partly because of the time and hassle involved in opening an ISA. Unfortunately, the process in setting up and running an investment account in the UK can be so laborious and frustrating that it puts off many people from even bothering.”
“Londoners are, on average, almost six years younger than the rest of the UK so naturally are going to save less than older savers, but that issue can be partly dealt with by making the process of investing more suited to the generation that expect to do most of their transactions through a smartphone, without having to deal with paper forms.”
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South West England has the UK’s highest rate of ISA ownership
The South West has the highest proportion of ISA ownership in Great Britain, with 51.7% of all individuals currently holding an ISA.
The high ownership of ISAs in the South West is partly due to the larger than average proportion of over 65s in the region, 11.6% of total population, compared to an average of 10.6% across the UK***.
The South East and East of England are the next regions with the highest percentage of adults holding an ISA.
*Year end April 5 2012-13, latest figures available.
** Gross Disposable Household Income – money left taxes, rents and mortgage costs are paid average GDHI for London is £23,881 versus £17,559 for the UK as a whole
*** ONS figures from 2011 census.