Low cost of mortages makes cash-rich northerners the best off people in Britain

EIGHT OF the 10 richest places in England are now in the north ofthe country, research from Barclays shows.

While people in the South may have higher salaries, northernersenjoy bigger disposable incomes because of lower house prices andliving costs.

Cheshire, home to some of the richest people in Britain, offersthe most value for money, say researchers. They calculated averagesalaries in English constituencies, and linked those to the cost ofliving to establish the real value of disposable income.

Tatton in Cheshire - the constituency once represented by theformer Tory MP Neil Hamilton - topped the table, with the averagesalary of pounds 29,000 actually worth more than pounds 40,000 oncethe cost of living was taken into account. Neighbouring Cheadle,where David and Victoria Beckham have a pounds 2m home, came seventh.The average salary of about pounds 26,700 is worth pounds 37,800 inreal terms.

Other Cheshire residents include the Manchester United manager,Sir Alex Ferguson, the former Take That star Gary Barlow and the Dukeof Westminster, Britain's richest man.

The only London borough to make it into the top 10 was Kensingtonand Chelsea, and that was because its residents earn so much thatthey can afford the high cost of living in the capital.

Of the top 50 wealthiest areas, 12 are in the North-west and sevenare in Yorkshire, with just four in London and three in the South-east.

While people in the South have seen their salaries eaten up byrising house prices, northerners have had more ready cash with whichto enjoy life, according to the analysts.

However, the latest surveys indicate that while house prices arestagnating or falling in and around London, the North could seedouble-digit growth.

The internet property company Hometrack said last month thatproperties above a line running from the river Severn to the Washwere rising in price, while those below it were largely falling.

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

"When the cost of living is factored into the equation to give amore realistic measure of purchasing power, the wealth map of Englandand Wales changes dramatically with the North moving into poleposition.

"The reversal in relative fortunes when cost of living is takeninto account could well be a major factor behind the changes we arecurrently witnessing in the housing market.

"Housing costs in London and the South-east are levelling off andeven falling in some areas, as consumers simply cannot afford tochase house prices higher.

"In the North, the real value of disposable incomes give someheadroom for continued house price growth."