Hangover Cure: Dealing with the household debt overhang as interest rates rise

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Housing, Wealth and Debt

The UK is entering a period in which interest rates are expected to start rising again – with the first moves potentially coming later this year – having insufficiently dealt with the debt overhang. This leaves the UK economy vulnerable to even modest increases in interest rates.

Deconstructing the debt overhang will not be costless, but it is in everyone’s interests – borrowers, lenders, government and taxpayers alike – to adopt a pro-active measured approach rather than simply allowing it to collapse. We favour an orderly and managed dismantling of the debt overhang. This report sets out a series of recommendations for lenders, borrowers and policy-makers to make that happen.

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Building Homes for Generation Rent

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Housing, Wealth and Debt

A low-risk income return of 4.7 per cent should be achievable for institutional investors putting money into the private rented sector – a move which could also help solve Britain’s housing crisis for families on modest incomes. Building Homes for Generation Rent identifies a £140 million property portfolio, made up of almost 800 rental homes around … Continued

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