Harrogate, Knaresborough and the Vale of York are ranked among the top 25 "wealthiest" places to live in the UK, according to new research.

But York falls well behind them in the Barclays Private Clients study, which categorises parliamentary constituencies in terms of their disposable income.

Analysts looked at average salaries and the cost of living across England and Wales to establish the actual value of disposable income to provide a countrywide "wealth map".

They found that when the cost of living is included in traditional surveys of income, the results vary dramatically, with areas in the north moving into pole position.

Gordon Rankin, marketing director of Barclays Private Clients, said the "reversal in fortunes" could be a major factor behind the changes being seen in the housing market.

He said: "Housing costs in London and the south-east are levelling off and even falling in some areas, as consumers simply cannot afford to chase house prices higher.

"In the north, the real value of disposable income gives some headroom for continued house price growth."

The survey found that Harrogate and Knaresborough came as the eighth "wealthiest" area with an actual average salary of £25,956, becoming a cost-of-living adjusted salary (COLAS) of £36,761.

Residents in the Vale of York also have cause to be happy, according to the research, with an average local income of £24,561 and a COLAS salary of £34,789 placing them in 21st place.

Meanwhile, York came almost half-way down the list of 570 constituencies at 239, with an average income of £19,878 and COLAS salary of £28,156.

Overall, eight of the top ten wealthiest places in England and Wales are in the north of the country, with Tatton, in Cheshire, topping the chart.

Hallam, in Sheffield, emerged as the second wealthiest place in real terms, while Kensington and Chelsea, which has the highest actual average salary in the country, came third.

Updated: 15:10 Wednesday, May 14, 2003