Seaside towns suffer from highest concentration of personal insolvencies

Britain’s coastal communities are suffering from the highest level of bankruptcies compared to the rest of the UK, according to new analysis from Experian, the global information services company.

While figures published by the Insolvency Service showed there were 7.2 percent fewer personal insolvencies in Q3 2012 compared with the same quarter in 2011, certain pockets of the UK are in stark contrast.

Experian’s analysis of insolvency statistics found that of the top ten communities appearing most frequently in the highest concentration of personal insolvencies list, only one – Motherwell, near Glasgow – was inland.

Kirkcaldy, Falkirk and Clydebank saw the greatest numbers of personal insolvencies in July to September 2012, with 20 in every 10,000 households being declared insolvent. In Clydebank in West Dunbartonshire, bankruptcies increased by 87 percent when compared with the same quarter in 2011. While Scotland’s coastal communities bore the brunt of insolvencies in Q3 2012, key tourist resorts in England also recorded increasing bankruptcy levels; Hartlepool, Weston-super-Mare and Scarborough saw personal insolvencies rise by 98 percent, 43 percent and 20 percent respectively.

The picture is a little brighter for London as boroughs such as Hammersmith, Wandsworth, London’s West End and Kensington recorded the lowest levels of personal insolvencies in Q3 2012. St Albans saw the UK’s biggest fall, with one in every 10,000 households being declared insolvent, 55 per cent less than in Q3 2011.

The Ex-Council Community group, consisting of people who have a comfortable lifestyle, living in ex-council homes and the Industrial Heritage segment, also saw insolvencies increase between July and September 2012. These groups represented 14.77 per cent and 10.09 per cent of insolvencies respectively in Q3 this year.

In stark contrast, the suburban middle class experienced the biggest drop in their share of personal insolvencies in the last 12 months. The Suburban Mindsets group saw its proportion of insolvencies decrease by 48 basis points to 10.50 per cent in Q3 2012.  The Careers and Kids group, typically young, middle-class couples with children also experienced a fall in its share of insolvencies, from 6.34 per cent in Q3 2011 to 5.96 per cent in Q3 2012.