Market Trends of UK Home Equity Lending Industry
This section covers the major market trends shaping the UK Home Equity Lending Market according to our research experts:
Raising Homeownership Rate is Driving the Home Equity Lending Market
The homeownership rate in the United Kingdom is recovering from the global financial crisis when the homeownership rate hit its lowest in the year 2013-2014. Home equity lending provides the credit for the homeowners based on their equity in the property so increasing homeownership is a positive sign for the home equity lending market. The increased residential property sales in the United Kingdom also show increased preference of the UK citizens for the property investment. The use of homeowners equity and home equity line of credit for property investment is increasing gradually in the United Kingdom.
There is Growing Interest for Home Equity Releases in the United Kingdom
According to a survey of homeowners in the United Kingdom, 22% of current workers intend to use the value of their property to support their retirement, owing to the country's record home price hikes. A third of all non-retirees own a home yet have less than EURO 10,000 in their pension account. Based on an examination of median property prices, the average homeowner in England and Wales may access almost USD 100,000 in equity release, which might considerably improve the retirement of the 70% of over 65s who are 'state pension dependant' but also homeowners. In the fourth quarter of 2020, more than GBP 600 billion of equity was available for release in UK houses.
