Oil wealth drives disposable income in AberdeenNews // April 15, 2014
Chartered accountants UHY Hacker Young Group say residents of Aberdeen in the UK have seen the biggest increase in their disposable income of any major town or city in the UK.
Aberdeen’s households are now on average £2,285 better off than before the recession, following a 19 per cent increase in disposable household income over the last five years from £15,143 to £17,986.
The average household disposable income for the UK’s Top 40 towns and cities has risen by just £1,761 over the same period to £14,068. The rise in disposable household income has largely been driven by substantial reduction in mortgage costs as a result of the Bank of England’s interest rate policy.
UHY Hacker Young Group looked at the growth in average household disposable income – the money a household has left to spend or save after taxes and mortgages or rents - in the UK’s Top 40 towns and cities (by population size).
Colin Wright, a partner at UHY Hacker Young, said: "Households in Aberdeen have benefitted from both the collapse in the UK’s mortgage costs and, uniquely, from the oil boom.
"As one of the few global centres of the oil and gas industry Aberdeen has boomed in recent years.
“It can be hard to imagine, but Aberdeen is now part of that small group of international oil cities that have had a relatively good recession like Houston, Bahrain and Almaty.”