Nottingham, 01 April 2015 - Locations in the North of England and seaside towns are suffering high rates of personal insolvency, with young families on limited budgets struggling the most.
Experian’s data shows that 19 out of 30 towns with the highest rates of insolvency are located in the North of England and North Wales. Seaside towns are also continuing to struggle: Torquay, Scarborough and Penzance have the highest rates of personal insolvencies anywhere in Great Britain. Torquay tops the list with 19 out of every 10,000 households being declared insolvent in Q4 2014.
Experian’s analysis using its Mosaic people classification system reveals hard-pressed and vulnerable young families with squeezed budgets in the Family Basics group continue to find their circumstances difficult. Once again they have the highest rate of personal insolvencies of any group, down from 21 to 19 in every 10,000 households in Q4 2013 vs 2014.
It is in these areas and within these sectors where the need for responsible lending is greatest. Experian is helping by encouraging consumers to think about personal debt management and working with lenders to give them greater insight, enabling businesses to treat customers more fairly while taking account of affordability.
Jonathan Westley, Managing Director of Experian’s Consumer Information Services UK & Ireland commented: “Insolvency rates within young families and across some key coastal towns and locations in the North remind us there is still some way to go in terms of recovery. Many people are still on stretched budgets further highlighting the need for credit providers to recognise circumstances unique to each individual, enabling their money to go further and help support them against debt.
“At Experian we’re actively working with debt advisors to provide them with guidance and expert advice around credit matters and on the positive steps people can take to manage and improve their credit scores.”
In the last three months Experian has reached over 900 debt advisors with free advice and guidance on how they can help people with personal debt management and improve credit awareness.
Overall the picture is improving and the signs for 2015 are positive with personal insolvencies in Great Britain falling from 10 in every 10,000 households in 2013, to nine in every 10,000 households in 2014. This is also reflected by the Q4 year–on-year figures, which also show a decline from 10 to nine in every 10,000 households in 2013 and 2014 respectively – the lowest Q4 rate since 2009.
Geographically, Skipton in North Yorkshire bucked the prevailing trend and saw the biggest improvement in the country year-on-year: 13 in every 10,000 households were declared insolvent in Q4 2013 compared with six in every 10,000 households in Q4 2014. Stratford-upon-Avon in South Warwickshire also showed strong signs of recovery with a drop in insolvency rates from 12 in every 10,000 households in Q4 2013 reducing to five in every 10,000 households in Q4 2014.
Jonathan Westley concluded: “The good news is that we’re on the right path and it’s promising that overall insolvency rates are steadily declining. The current low mortgage interest rates may well have aided the improvements we’ve seen among many groups, including the Aspiring Homemakers, those young people who have recently set up home.”
Experian’s Mosaic analysis reveals that every demographic group has also seen a reduced rate of personal insolvency compared with Q4 2013. The Aspiring Homemakers group - younger households settling down in housing priced within their means - saw the biggest improvementyear-on-year, from 13 in every 10,000 households being declared insolvent in Q4 2013, to 10 in every 10,000 households in Q4 2014.
The Suburban Stability group, which comprises mature suburban house owners living settled lives, also experienced a reduction in the insolvency rate from seven in every 10,000 households in Q3 2014, to five in every 10,000 households in Q4 2014.
-ENDS-
Notes to editors
Top 30 towns by highest insolvency rate
|
Town Territory |
Insolvency rate per 10,000 households Q4 2014 |
|
1. Torquay |
19 |
|
2. Scarborough |
18 |
|
3. Penzance |
18 |
|
4. Warrington |
16 |
|
5. Sittingbourne |
15 |
|
6. Northwich |
15 |
|
7. Bootle |
15 |
|
8. Rhyl |
14 |
|
9. Chester |
14 |
|
10. Skegness |
14 |
|
11. Truro |
14 |
|
12. Southport |
14 |
|
13. Barnsley |
14 |
|
14. Grimsby - Victoria Street |
13 |
|
15. Washington |
13 |
|
16. Hartlepool |
13 |
|
17. Stoke-on-Trent - City Centre (Hanley) |
13 |
|
18. Merthyr Tydfil |
13 |
|
19. Chorley |
13 |
|
20. Kingston upon Hull |
13 |
|
21. Waterthorpe, Sheffield |
13 |
|
22. Hastings |
13 |
|
23. Wrexham |
13 |
|
24. Dorchester |
13 |
|
25. Neath |
13 |
|
26. Liverpool - Central |
13 |
|
27. Tamworth |
13 |
|
28. Plymouth |
13 |
|
29. Redditch |
12 |
|
30. Scunthorpe |
12 |
|
Mosaic Group |
Description |
Insolvency rate per 10,000 households Q4 2013 |
Insolvency rate per 10,000 households Q4 2014 |
|
Family Basics |
Family Basics are families with children who have limited budgets and can struggle to make ends meet. Their homes are low cost and are often found in areas with fewer employment options. |
21 |
19 |
|
Suburban Stability |
Suburban Stability are typically mature couples or families, some enjoying recent empty-nest status and others with older children still at home. They live in mid-range family homes in traditional suburbs where they have been settled for many years. |
7 |
5 |
|
Modest Traditions |
Modest Traditions are older people living in inexpensive homes that they own, often with the mortgage nearly paid off. Both incomes and qualifications are modest, but most enjoy a reasonable standard of living. They are long-settled residents having lived in their neighbourhoods for many years. |
13 |
11 |
|
Urban Cohesion |
Urban Cohesion are settled extended families and older people who live in multi-cultural city suburbs. Most have bought their own homes and have been settled in these neighbor hoods for many years, enjoying the sense of community they feel there. |
8 |
7 |
|
Transient Renters |
Transient Renters are single people who pay modest rents for low cost homes. Mainly younger people, they are highly transient, often living in a property for only a short length of time before moving on. |
16 |
15 |
|
Rural Reality |
Rural Reality are people who live in rural communities and generally own their relatively low cost homes. Their moderate incomes come mostly from employment with local firms or from running their own small business. |
9 |
8 |
|
Domestic Success |
Domestic Success are high-earning families who live affluent lifestyles in upmarket homes situated in sought after residential neighbourhoods. Their busy lives revolve around their children and successful careers in higher managerial and professional roles. |
6 |
4 |
|
Aspiring Homemakers |
Aspiring Homemakers are younger households who have, often, only recently set up home. They usually own their homes in private suburbs, which they have chosen to fit their budget. |
13 |
10 |
|
Rental Hubs |
Rental Hubs contains predominantly young, single people in their 20s and 30s who live in urban locations and rent their homes from private landlords while in the early stages of their careers, or pursuing studies. |
9 |
8 |
|
Municipal Challenge |
Municipal Challenge are long-term social renters living in low-value multi-storey flats in urban locations, or small terraces on outlying estates. These are challenged neighbourhoods with limited employment options and correspondingly low household incomes. |
14 |
13 |
|
Vintage Value |
Vintage Value are elderly people who mostly live alone, either in social or private housing, often built with the elderly in mind. Levels of independence vary, but with health needs growing and incomes declining, many require an increasing amount of support. |
12 |
10 |
|
Prestige Positions |
Prestige Positions are affluent married couples whose successful careers have afforded them financial security and a spacious home in a prestigious and established residential area. While some are mature empty-nesters or elderly retired couples, others are still supporting their teenage or older children. |
3 |
2 |
|
Country Living |
Country Living are well-off homeowners who live in the countryside often beyond easy commuting reach of major towns and cities. Some people are landowners or farmers, others run small businesses from home, some are retired and others commute distances to professional jobs. |
5 |
4 |
|
Senior Security |
Senior Security are elderly singles and couples who are still living independently in comfortable homes that they own. Property equity gives them a reassuring level of financial security. This group includes people who have remained in family homes after their children have left, and those who have chosen to downsize to live among others of similar ages and lifestyles. |
5 |
4 |
|
City Prosperity |
City Prosperity work in high status positions. Commanding substantial salaries they are able to afford expensive urban homes. They live and work predominantly in London, with many found in and around the City or in locations a short commute away. Well-educated, confident and ambitious, this elite group is able to enjoy their wealth and the advantages of living in a world-class capital to the full. |
3 |
3 |
Contact:
Maddy Morgan Williams / Sarah Muir
Lansons
020 7490 8828
maddymw@lansons.com / sarahm@lansons.com
About Experian
We are the leading global information services company, providing data and analytical tools to our clients around the world. We help businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. We also help people to check their credit report and credit score, and protect against identity theft. In 2014, we were named by Forbes Magazine as one of the ‘World’s Most Innovative Companies’.
We employ approximately 16,000 people in 39 countries and our corporate headquarters are in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended March 31, 2014, was US$4.8 billion.
To find out more about our company, please visit http://www.experianplc.com or watch our documentary, ‘Inside Experian’.