But index claims residents are more miserable than many less well off people

Hammersmith and Fulham has officially been declared the most prosperous area in Britain.

A new 'Geography of Prosperity' index produced by The Legatum Institute has found people living in two adjoining boroughs, Hammersmith & Fulham and Kensington & Chelsea are the most prosperous in Britain, with an average annual income of £133,000 a year.

However, the Institute says that despite this exceptional wealth - over five times the national average - we are still more miserable than many poorer people, coming only 88th out of 170 in the life satisfaction stakes.

The Legatum Institute - which describes itself as a charitable public policy think-tank whose mission is to help people lead more prosperous lives - found that London contains four out of five of Britain's most prosperous areas, with the fifth being the Outer Hebrides!

However, its findings also reveal that the capital is home to three out of ten of the least prosperous areas, including Croydon, Brent and Bexley & Greenwich.

The Institute says the findings are based on measuring the average income per person along with how happy they feel, based on combining the results of two different set of date - Eurostat’s data on gross domestic product for UK local areas and secondly, the ON wellbeing statistics.

They reveal:

The most prosperous places in the UK are:
1. Hammersmith & Fulham and Kensington & Chelsea
2. Westminster
3. Wandsworth
4. Camden and the City of London
5. Outer Hebrides (Eilean Siar)

The least prosperous places in the UK are:
1. Wolverhampton
2. Sandwell (West Midlands)
3. Blackpool
4. Liverpool
5. East Derbyshire

The Outer Hebrides were also ranked top for life satisfaction, with the Orkney Islands coming second.

Sian Hansen, Executive Director of the Legatum Institute, says: " The Geography of Prosperity index reveals that prosperity is about more than just wealth — it is about feeling that one’s life is worthwhile. The data shows that London is unsurprisingly the most diverse of all the major cities in the UK.

" The index shows that while robust economic success can make an area prosperous; this in itself is not enough. Some of the most prosperous areas of the country are those where, regardless of their income, people have the opportunity to lead healthy, fulfilling and prosperous lives."

October 30, 2015