Nottingham, 15 June 2015 – Social and short-term renters along with those living in seaside towns are among those suffering the highest rates of personal insolvency anywhere in the country.
Half of the towns in the top ten list for the highest insolvency rates are located on the coast and four of these are in south west England.
Experian found that social renters living in urban areas saw the biggest deterioration in insolvencies over the past year– up from 8 to 12 per 10,000 households. Younger families on limited budgets continue to experience the highest rate of insolvencies overall at 16 in every 10,000 households. Single people privately renting short-term and low cost homes suffered the second highest number of insolvencies - 13 in every 10,000 households.
These figures highlight where the need for responsible lending is greatest, and where Experian is urging credit providers to fully assess affordability in their lending decisions. The patchy nature of economic recovery in certain pockets of the country highlights the importance of credit providers understanding each individual’s circumstances.
Jonathan Westley, Managing Director of Experian’s Consumer Information Services UK & Ireland commented: “It’s clear that the economic recovery has still not spread to all areas, as coastal towns in particular are struggling to stay afloat and still have high levels of insolvency. The same can also be said of young families and some people in ‘Generation Rent’, as many young and social renters find it as challenging as ever to make ends meet. It’s these areas where the need for responsible lending is greatest.
“At Experian we are able to offer help in three ways. We support free debt advice through funding, free credit reports and expert training, and we encourage people to think about personal debt and advise on the positive steps people can take to manage and improve their credit scores. Finally, we work with lenders to give them the insight to treat customers fairly while taking account of affordability.”
Once again, Skipton in North Yorkshire saw the biggest recovery in the country year on year, with rates decreasing from 13 in every 10,000 households in Q1 2014 to 9 in every 10,000 households in Q1 2015. Meanwhile, Woolwich in South East London saw the biggest recovery in the country compared to the previous quarter, with rates decreasing from 15 in every 10,000 households in Q4 2014 to 6 in every 10,000 households in Q1 2015.
Only high earning families saw a positive improvement in the insolvency rate year on year, with all other groups suffering a worsening rate or remaining static. However, despite still suffering the highest rate of personal insolvencies overall in Q1 2015, families with limited resources saw the biggest improvement compared to the previous quarter, declining from 19 in every 10,000 households in Q4 2014 to 16 per 10,000 households in Q1 2015.
The national average for personal insolvencies worsened slightly year on year, from 6 in every 10,000 households in Q1 2014 to 7 in Q1 2015. This headline figure is, however, an improvement on the Q4 2014 figure of 9 insolvencies in every 10,000 households.
-ENDS-
Notes to editors
Top 30 towns by highest insolvency rate
|
Town Territory |
Insolvency rate per 10,000 households Q1 2015 |
|
14 |
|
14 |
|
14 |
|
14 |
|
13 |
|
13 |
|
12 |
|
12 |
|
12 |
|
12 |
|
12 |
|
12 |
|
12 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
11 |
|
10 |
Top 10 improving towns by number of insolvencies per HH Q1 2014 – Q1 2015
|
Town / Territory |
Number insolvent per 10,000 households Q1 2014 |
Number insolvent per 10,000 households Q1 2015 |
Difference |
|
13 |
9 |
4 |
|
10 |
6 |
4 |
|
8 |
4 |
4 |
|
5 |
2 |
3 |
|
9 |
6 |
3 |
|
9 |
6 |
3 |
|
8 |
5 |
3 |
|
8 |
5 |
3 |
|
6 |
3 |
3 |
|
8 |
5 |
3 |
Top 10 deteriorators (towns with the biggest rise in insolvencies per HH) Q1 2014 – Q1 2015
|
Town / Territory |
Number insolvent per 10,000 households Q1 2014 |
Number insolvent per 10,000 households Q1 2015 |
Difference |
|
6 |
12 |
6 |
|
6 |
12 |
6 |
|
2 |
7 |
5 |
|
8 |
14 |
6 |
|
3 |
8 |
5 |
|
5 |
10 |
5 |
|
9 |
14 |
5 |
|
8 |
13 |
5 |
|
4 |
8 |
4 |
|
7 |
11 |
4 |
|
Mosaic Group |
Description |
Insolvency rate per 10,000 households Q1 2014 |
Insolvency rate per 10,000 households Q1 2015 |
|
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. |
13 |
16 |
|
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. |
4 |
4 |
|
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. |
8 |
9 |
|
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. |
5 |
6 |
|
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. |
11 |
13 |
|
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. |
7 |
7 |
|
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. |
4 |
3 |
|
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. |
8 |
8 |
|
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. |
6 |
7 |
|
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. |
8 |
12 |
|
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. |
7 |
9 |
|
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. |
2 |
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. |
3 |
3 |
|
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. |
3 |
3 |
|
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. |
2 |
2 |
Contact:
Maddy Morgan Williams / Sarah Muir
Lansons
020 7490 8828
maddymw@lansons.com / sarahm@lansons.com
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