The pandemic reduced spending for many households and government policies have helped support incomes. This has led to 28% of households saving more during the pandemic.
42% of high-income employed households saved more during the pandemic compared with 22% of low-income employed households. Retirees also saved more, 36% had increased their savings.
Which households have saved more and what those households plan to do with their savings will impact the housing market.
Households who have saved more could continue to support the higher levels of transactions and prices seen since May 2020. Source: Dataloft, 2020 H2 NMG Household Survey and Bank Calculations