The demand for housing will increase over the next 20 years, according to Alliance & Leicester, which will in turn raise the uptake of homeowner loans in the UK.
According to the bank’s new report The Changing UK Household Market, the amount of people seeking one-person households will rise 53 per cent by 2026.
Furthermore, more than 200,000 new properties will need to be built to meet the demand of those individuals who take out a homeowner loan and then live by themselves, the report suggests.
Commenting on the changing patterns in property purchasing, Stephen Leonard, director of mortgages at Alliance & Leicester, indicated the effect it could have on homeowner loan companies.
“Social trends influence the way we live – right up to the house we live in. We are currently witnessing a change in society that is set to continue well into the future,” he said.
“Mortgage lenders need to recognise that future generations of homebuyers will have differing needs and financial circumstances and will need to consider this when designing mortgage products.”
Research from mform.co.uk suggests that more than 1.12 million people pay more than half of their monthly paycheque on their mortgage repayments.
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