Household repayment behaviour and neighbourhood effects

Publication type

Journal Article

Author

Publication date

May 15, 2015

Summary:

The recent financial crisis has revealed the financial vulnerability faced by a significant number of households in the UK. Households experiencing financial problems may potentially fall into arrears in meeting financial obligations such as rent, mortgage payments or household bills. Indeed, such arrears have been regarded as one of the most direct measures of financial stress at the household level. In this paper, we explore the relationship between household repayment behaviour and neighbourhood ties in order to identify possible channels of support for households experiencing financial stress. We analyse data on 17,723 households drawn from wave 1 of the UK longitudinal study, Understanding Society, merged with information on neighbourhood ties defined at the postcode area level elicited from a sample of 48,906 individuals. Our findings, which relate to the post financial crisis era, suggest that households in regions characterised by strong neighbourhood ties are less likely to report being in arrears and that this relationship is particularly apparent in the case of housing costs. This inverse relationship is strongest in regions characterised by a high density of individuals who feel able to turn to someone in the neighbourhood for support or advice. Thus, neighbourhood and community groups, which enhance social interaction and neighbourhood ties, may be effective channels of support for financially vulnerable households.

Published in

Urban Studies

Volume and page numbers

Volume: 52 , p.1 -1

DOI

http://dx.doi.org/10.1177/0042098014533393

ISSN

420980

Subjects

#522524

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest