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Report reveals misfortune amid the council estates 8 September 2011

The study from credit reference agency Experian shows that this group of society, which it dubbed ‘council community’ and said was typified by individuals on estates who have exercised their right to buy, recorded the largest share of people declared insolvent in the second quarter of 2011.

Experian’s analysis using Mosaic, its consumer classification tool, shows that this group of society accounted for almost 15% of all UK personal insolvencies in the second quarter.

Mosaic shows which groups of society across the UK - defined by various characteristics such as income group, lifestyle and career – are experiencing increases of falls in insolvencies. 

It states that a young, well educated group of professionals, which is given the term ‘liberal opinions,’ experienced the biggest improvement in insolvency levels. A total of 1.913 individuals from this group became insolvent in the first quarter of 2011, 26% fewer than the same period in 2010.

Young people on limited incomes living in council accommodation also experienced an improvement. Some 1,884 individuals from the ‘upper floor living’ demographic became insolvent during the second quarter, a 22% decline on 2010 levels. This group was defined as people living on limited incomes, renting small flats form local councils or housing associations.

Simon Waller, head of collections for Experian UK and Ireland, said: “Despite personal insolvencies dropping as a whole and the younger groups making significant strides to improving their insolvency rate, the data from the second quarter shows a number of geographic and demographic variances.”

The study also breaks insolvency levels down to individual cities in the UK.

It reveals that Scotland, the north and the east midlands remain the regions seeing the highest rate of insolvencies, with 12 in every 10,000 households experiencing personal insolvency in the second quarter.

Evesham in Worcester suffered the highest rise in personal insolvency levels of any town, with total insolvencies rising 48% to 12 in every 10,000 homes, compared to a year ago.

Brent wood in Essex also saw a sharp rise, with insolvency levels jumping 47% to seven in every 10,000 households during the past year.

Putney and Chiswick in London experienced the biggest drop in insolvencies, with numbers falling 78% to just one in every 10,000 households.



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