South West tops bankruptcy league

Low wages and high house prices are partly responsible

Six of the top 10 bankruptcy hotspots in the UK are in the South West, according to the credit reference agency Experian.

Research carried out for the BBC has suggested the gulf between incomes and house prices may be to blame.

Torquay has the highest proportion of bankruptcies per head in the UK.

Other hotspots include Plymouth, Newton Abbot and Barnstaple in Devon, Bournemouth and Weymouth in Dorset and Truro in Cornwall.

TOP 10 BANKRUPTCY HOTSPOTS Torquay, Devon Hull, East Yorkshire Plymouth, Devon Bournemouth, Dorset Eastbourne, East Sussex Newton Abbot, Devon Barnstaple, Devon Hastings, East Sussex Weymouth, Dorset Truro, Cornwall

The region is well-known for its problem with low wages, caused partly by the decline in traditional industries.

And Professor Peter Gripaios from the Plymouth Business School believes low wages is a major factor.

He told BBC News: "Of course I'd say it's partly a reflection of the low wages.

"What goes with that is the house prices which are driven up by people moving down to live here, or having second homes - that makes it particularly hard."

Holiday resorts rely on summer trade

But the South West Chamber of Commerce said, despite areas of deprivation, the local economy was generally doing well.

Spokesman Nigel Hutchings said resort areas like Torquay were seasonal and rely on having a good summer season to help them through the year.

Experian's data appears to have underlined the north-south divide, with the 10 most affluent locations in London and the South East.

The Midlands, the north of England and Scotland have the highest percentage of people on the breadline.