Debt map of Britain reveals ‘in the red’ hotspots
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An interesting map of England has been released recently by the credit check company Experian. The map shows the division of debt around the country and contains some obvious details but also some surprising points of note.
The report shows that total outstanding balances on UK borrowing rose 9.24% over the past 12 months from £1.061 Trillion to £1.159 Trillion. However it reveals that debt growth has slowed from the previous twelve months period, where the increase was 14%.
Looking at combined debt balances by town/region (i.e. mortgages, loans, credit cards and overdrafts), the analysis shows that Northern Ireland has experienced the largest change per head, up almost 23% over the last 12 months. This is followed by Kensington, Chelsea, Wandsworth, Hammersmith and Wolverhampton. At the other end of the scale, areas that have shown the least increase are Aldershot, Dartford, Ilford, Bishops Stortford and Newport on the Isle of Wight.
Penzance, Bromley, Skipton, Eastleigh and Bromsgrove have experienced the largest rise in credit card balances. On the other hand frugal Falkirk, Birmingham, Weymouth, Dunfermline and Widnes have made the most efforts to reduce their credit card balances.
The average increase in mortgage balances was in line with UK house price increases in 2007, and less rapid than in 2006, suggesting that there may already have been belt tightening pre-August. Otherwise it is interesting that in 2006, the main growth in balances was in the relatively less affluent northern centres, while as last year it was mostly blue chip London locations, Scotland and Northern Ireland (both of which saw strong growth) and a few bits and pieces elsewhere. This partly reflects the concentration of house price growth to London and the devolved nations, but may also show a flight to quality by lenders.
Northern Ireland, Kensington, Chelsea, Wandsworth and Wolverhampton have experienced the largest rises in mortgage balances. In most instances this is a reflection of the buoyant housing market in these areas, though perhaps not in Wolverhampton. At the other end of the scale, Aldershot, Dartford, Ilford and Bishops Stortford have experienced the smallest rises in mortgage costs per head, suggesting a slower housing market alongside greater efforts at belt tightening.
Looking at loans Hartlepool, Rotherham, Redcar, Middlesbrough and Chelsea have increased their balances most. Cirencester, Poole, Welwyn, Windsor and Dorchester have made most efforts to reduce their loan balances.
