A SOUTH Coast area has been named in the UK’s top 20 for individual insolvencies.

The Isle of Wight has the highest rate in Hampshire and the Isle of Wight, and has the joint 18th highest rate in the UK.

The figures, compiled by insolvency trade body R3, show that its rate of 32.8 out of 10,000 people is by far the highest in the region, with the next highest being Gosport, with 26.1.

R3's Southern Committee, which is made up of insolvency experts from across the region, said the statistics point to major differences in people’s financial arrangements across Hampshire and the Isle of Wight.

Winchester had previously held the title of the county’s lowest insolvency rate but after a small rise, the first since 2011, it has been overtaken by Fareham and East Hampshire.

Fareham has seen a significant drop, with rates falling from 19.4 to 14.4, while Gosport has also seen a drop despite still having the highest rate in Hampshire.

Continuing the trend, Eastleigh had a big drop, from 22.8 to 16.5, while Test Valley saw a slight drop.

Southampton was one of the few areas in Hampshire to see a rise – from 17.8 to 19.5 – having seen the biggest drop in 2014. New Forest also increased slightly to 17.3.

However its rate is still better than Portsmouth, which stands at 20.4.

Andrew Watling, chairman of the Southern Committee of R3 and a partner at Quantuma in Southampton, said: “These new figures really do show that individual insolvency rates can be dramatically different in areas that are very close to one another.

"Each local authority area has its own economic, social and geographic factors that have an impact on individual insolvencies, which is why even some neighbouring areas can have huge differences.

“One trend we have identified nationally is that seaside and coastal areas tend to have higher individual insolvency rates and this is evident in the Isle of Wight’s ranking nationally.

“This is most likely because unemployment is much higher in coastal towns, which rely on the unpredictable tourism sector for jobs and growth.

"Similarly a high number of jobs in this sector are short-term or low paid, giving residents there less security and stability in their individual finances.

“While this year’s figures may seem to paint a bleak picture for the Isle of Wight, it’s encouraging to see that its individual insolvency rate has decreased, albeit slightly. The creation of new and stable jobs on the island will play a major part in the individual finance of its residents over coming years.”