Blockchain technology set to free capital tied up in your home

According to estate agent, Savills, the value of UK residential properties is in excess of £8.68 trillion and the value of outstanding mortgages is £1.67 trillion. Whilst these are massive numbers, what it does mean is that, due to spiralling residential real estate prices, the amount of capital effectively locked up in people’s homes is enormous. It also helps to explain why the equity release market is growing so fast. In the UK, the amount of capital that is being borrowed, using residential real estate as collateral, grew to over £6 billion in 2022. According to the Equity Release Council: “93,421 new and returning customers choosing to access their property wealth via equity release products - up 23% year-on-year”. It is predicted that the size of the equity release market in the UK will exceed £13 billion by 2031.

Growth in house prices 2010 to 2022

Source: Primeresi.com

Equity release in the US, more widely known as Home Equity Line of Credit (HELOC), now stands at $336 billion, w…