LONDON, May 12, 2020 /PRNewswire/ -- Cloud-based property acceleration platform The Property Block are set to tackle the housing shortage in the UK and provide homeowners with a capital raising alternative to equity release during the coronavirus crisis.
With enquiries into equity release up by 15% during the lockdown, experts are predicting that the market will continue to grow in popularity with consumers looking to prop up businesses, prepare for retirement or free up much needed capital.
While the short term benefits of equity release are clear there are longer-term implications for consumers to consider such as rising interest rates, admin fees and not being able to leave behind properties for inheritance.
Alexander Hagan, The Property Block's managing director, hopes to offer homeowners an alternative solution through their Fields of Gold initiative.
He commented, "Equity release ties homeowners into a lifelong mortgage and in the end, their property will be cut out of the inheritance. Our mission is to open the eyes of thousands of homeowners in the UK to the potential field of gold they are sitting on. We will be able to help many families achieve financial stability without losing their beloved home in an expensive, complex, equity release deal."
The Property Block's powerful data-driven algorithm identifies property or land with redevelopment potential in areas where there's a demand for more affordable housing. Once located, planning permission is applied for and the site is sold on to developers or the housing association.
To date the platform has identified 60,000 garden plots across Surrey, Kent and West Sussex with redevelopment potential and plans to continue expanding their reach across the UK are well underway.
This may come as welcome news for consumers who are heading towards retirement or those who have been affected by the coronavirus and are looking to free up capital out of their property without getting tied into a lifelong mortgage or being forced to sell their property.
Phil and Megan Jones from Croydon commented, "We were considering equity release to help our daughter get on the property ladder but after speaking with The Property Block they found a better solution. Now we hope to help our family financially and still leave the family home in our inheritance."
With an estimated 8.4 million people in England living in unaffordable, insecure or unsuitable homes, The Property Block aims to not only provide homeowners with a cash injection but to also address the national housing crisis.
A lack of investment in the right technologies over the past decade has created a gap in the market for residential development, especially for young families who are the most in need of affordable housing.
So by positioning themselves in the one to four bed property market in prime areas and focusing on relatively small developments, The Property Block aims to breathe life into a huge market, helping landowners to profit and supporting the community need for housing during the coming period of economic downturn.
SOURCE The Property Block