Young women are much more likely to be insolvent than young men
Higher expenses are contributing to a far higher insolvency rate among young women than young men.
According to accountancy firm Moore Stephens, women accounted for 65 per cent of personal insolvencies among the under-25s in the last year and 53 per cent of those among 25-34 year-olds.
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Jeremy Willmont, head of restructuring and insolvency at Moore Stephens, said: “Rental and house price inflation has been particularly aggressive over the last few years. As young women are more likely to rent than young men, they are seeing ever greater chunks of their income swallowed up by accommodation costs.”
Fewer women overall are becoming insolvent as unemployment and interest rates stay low, but they are making up a markedly higher percentage of insolvencies than men.
Young women also spend more on accommodation than young men as they are less likely to live at home with their parents. Data from the Office for National Statistics (ONS) recorded that one in three young men live at home, compared to one in five young women.
Last year, rents rose 11 per cent in the capital, 18 per cent in both Bristol and Brighton and 16 per cent in Newcastle and Edinburgh. House prices rose 8.1 per cent in the year to the end of May 2016.
The average UK house price was £211,000 in May – £16,000 higher than in the same month last year and £2,400 higher than in April, according to ONS. London remained the region with the highest average house price at £472,000.
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Moore Stephens also said that young women face greater pressure than men to maintain higher levels of spending on consumer goods. They are more frequently targeted by luxury brands selling expensive designer goods.