Home repairs hitting savings

A higher cost of living has meant that Britons are increasingly dipping into their savings in order to prop up other expenses, according to new research from Birmingham Midshires.

The firm's research found that the average Briton withdrew £400 from their savings account over the past three months, with home repairs high on the list for the over-55s – 23 per cent of whom cited emergency action on their car or property as a reason for taking the money out.

This was in part responsible for the age group withdrawing an average of £682 over the quarter – more than four times the amount taken by under-30s (£151).

"While homeowners are feeling the pressures following Bank of England rate decisions, there has never been a better time for people to put away their money," recommended Birmingham Midshires director of savings operations Jason Robinson.

"Interest rates at a six year high mean great returns for savers, whatever amount you can afford to put away," Mr Robinson added.

But further rate rises seem unlikely in the near future given lower inflation and the current problems being experienced by financial markets across the world.


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