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UK homeowners sit on £411.7bn usable housing equity

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KAREN JOY BACUDO

Finance Editor

UK mortgaged homeowners are holding £411.7 billion of usable housing equity, according to Selina Finance. The company estimates the average mortgaged household has £51,019 available within an 85% loan-to-value limit.

The figures come as housing market activity slows. House prices were flat in June, according to Nationwide, mortgage approvals have fallen, and new sales agreed were down 7% year on year. Zoopla forecasts completed transactions in 2026 will end up to 8% below the previous year, while the average two-year fixed mortgage rate remains above 5.5%.

Across the UK’s 8.07 million mortgaged homes, total equity stands at £791 billion, with just over half counted as usable equity under Selina Finance’s methodology. It defines usable equity as the amount that could be accessed without taking borrowing above 85% loan-to-value.

The analysis points to marked regional differences. London had the highest average usable equity per mortgaged household at £96,623, followed by the South East at £66,276.

Outside southern England, the North West stood out. Homeowners there hold £34.1 billion of usable equity, close to the combined £37.2 billion recorded for Wales and Scotland.

The figures feed into a wider debate over whether homeowners are choosing to improve existing properties rather than move. Higher borrowing costs and a significant number of failed sales have made moving less attractive for many households with mortgages.

Selina Finance estimates that roughly a quarter of agreed sales fall through before completion. Against that backdrop, wealth tied up in homes remains one of the largest financial resources available to households.

Improve not move

A survey of 1,500 UK homeowners conducted for the report suggests home improvements are the main intended use for released equity. Some 38% said extensions and improvements would be their first priority, while 21% would use the money to pay off higher-interest debt and 11% would seek to buy a second property.

Selina Finance also estimates that households could save an average of £2,315 a year by using home equity instead of higher-interest forms of borrowing, putting the national total at £18.7 billion.

The company operates in home equity lending and describes itself as the UK’s only provider of Home Equity Lines of Credit, a form of second-charge mortgage secured against a borrower’s home. In the UK, homeowners have traditionally relied on remortgaging or property sales to access housing wealth.

The report draws a contrast with the United States, where Selina Finance says the home equity line market has grown to USD $422 billion. One new HELOC is opened there for every two new mortgages, highlighting a sharper difference in how households use property wealth.

Market backdrop

The housing market slowdown has emerged despite the large amount of value accumulated in residential property over recent years. Flat prices and weaker transaction volumes suggest that, for many owners, the economics of moving have worsened even as the paper value of their homes remains substantial.

That matters in a market where equity levels vary sharply by location but are widely spread across mortgaged households. Selina Finance based its calculations on an average UK loan-to-value ratio of 69% across 8,069,620 mortgaged properties, using data from the Office for National Statistics, the Financial Conduct Authority and Savills.

Its modelling adjusted regional house price figures upward by 7% to reflect total housing stock value. On that basis, the company concluded that a significant share of homeowners could access funds while staying within what it described as a prudent borrowing threshold.

Hubert Fenwick, Co-Founder and Chief Executive Officer of Selina Finance, said the figures reflect a housing market in which households may be less inclined to sell and more focused on reshaping their current homes.

“The housing market has stalled, but household wealth hasn’t. Half of 2026 is gone, sales are falling and prices are treading water, yet the average mortgaged homeowner is sitting on more than £51,000 of equity they could safely put to work. When moving is off the table, the question becomes how to make the home you already own work harder by considering the renovations or improvements which make moving unnecessary,” Fenwick said.



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Network Rail will not reopen Botley Road early despite completion

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Gas network company SGN confirmed it had repaired three minor gas leaks and left the site on Monday, August 3, six days earlier than expected.

The leaks were discovered during excavation works last month and contributed to the pushing back of the road’s reopening date, yet again, to September 20.

The completion of the gas mains replacement marked a significant step forward in the wider Oxford Station improvement project, which was originally budgeted at £161 million but is now expected to cost at least £237 million.

The development prompted hopes that Botley Road, closed beneath the rail bridge since April 2023, could reopen earlier than planned.

However, Network Rail has moved to manage expectations, saying the project remains on course to meet its existing target date rather than finish ahead of schedule.

A Network Rail spokesperson said: “We’re pleased that SGN has completed its gas mains replacement work.

“While this is an important milestone, it doesn’t necessarily mean the overall project will finish early as some remaining work is dependent on access to the railway, which we have had to rearrange to enable the replacement of the gas main.

“Our focus remains on meeting our planned deadline of 20 September for reopening Botley Road to traffic.”

While the completion of the gas works removes one of the most recent obstacles facing the scheme, Network Rail says further work under the bridge and around the station is still needed before the route can reopen to traffic.





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40-year-old Oxfordshire gymnastics club at risk of closure due to heat

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The club is currently struggling in the summer heat, and has launched a new fundraiser to keep its gymnasts safe.

The club, which is based at Grove House Barn near Warkworth in Banbury, launched the fundraiser so it could buy and install four air conditioning units to keep its space cool.

Currently, the club hopes to raise £7,000 through the appeal so it can buy four 10kW air conditioning units and cover all the installation costs.

So far, the club has raised £380.

Karl Wade, director of Wade Gymnastics, said the club has become “increasingly warm” during the summer months due to the rising temperatures.

READ MORE: Thames Water leakage targets are ‘not realistic’ says boss after pay rise

Wade Gymnastics at Grove House Barn in BanburyWade Gymnastics at Grove House Barn in Banbury (Image: Google Maps)

“Despite our best efforts to keep doorways and shutters open, it becomes very uncomfortable for gymnasts to play and train,” Mr Wade said.

He added: “The safety of our gymnasts and coaches is always our utmost priority.

“Unfortunately, the risk of having to close the business during these hot spells is increasing and we need to have more effective ways of keeping everyone cool.

“An air conditioning system would allow the business to stay open during those extreme hot conditions and continue to provide classes for everyone who attends.”

The gym currently delivers classes seven days a week for around 900 people, which range from toddlers to athletes competing at national level.

The gym club was founded more than four decades ago by Ruth Wade and, for the past 20 years it has been based at its current facility.





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Solihull Council appoints ICS.AI for AI discovery phase

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SOFIAH NICHOLE SALIVIO

News Editor

Solihull Council has appointed ICS.AI to deliver the first phase of an AI Transformation Discovery programme to examine how artificial intelligence could be used across several resident-facing services.

The 24-week programme will review opportunities in Adult Social Care, Children’s Services, Economy & Infrastructure, and Public Health. It is intended to help the council decide where AI could be used and where future spending should be directed.

In this first phase, ICS.AI will assess the council’s readiness for AI and identify use cases across the four service areas. The programme is expected to produce a prioritised shortlist of about 200 use cases, including 50 validated from a finance perspective, alongside a longer-term AI Transformation Roadmap.

The work is intended to create an evidence base before any wider implementation decisions are taken. Ethics, privacy, and safeguarding will be considered throughout the assessment process.

Discovery phase

ICS.AI will use its AI Target Operating Model framework to review Solihull’s current position across five dimensions before ranking opportunities. The outputs will be based on council-owned baseline data and reviewed by public sector specialists.

The approach reflects a broader pattern among local authorities exploring AI in service delivery while facing pressure to justify spending and manage risks around data use and public accountability. Councils have also been seeking clearer business cases before committing to larger technology programmes.

Solihull said the discovery exercise would support a measured approach to service modernisation. The authority wants to identify where AI could improve services for residents while also demonstrating value for money.

“We are committed to taking a well-considered and planned approach to modernising the services we provide. By building a strong evidence base for future decisions, this programme will help us understand where the greatest AI opportunities exist. We will then be able to prioritise those improvements that will deliver the greatest benefit for residents, while ensuring full value for the council,” said Councillor Dave Pinwell, Cabinet Portfolio Holder for Resources, Solihull Council.

Public sector focus

ICS.AI said the Solihull engagement builds on work it has carried out with more than 20 public sector organisations using its AI transformation and discovery assessments. Those organisations include Derby City Council.

The company focuses on AI projects for the public sector, where interest has increased as authorities look for ways to manage demand pressures in social care, public health, and other frontline services. At the same time, councils are under scrutiny to show that new technology investments are proportionate and supported by practical evidence.

Dwayne Johnson, Chief Local Government Officer at ICS.AI, said local authorities need stronger justification before committing funds. “Local authorities need confidence that every investment is backed by robust evidence and long-term value for residents. Solihull Council is taking the right approach by starting with a structured discovery programme that builds a clear understanding of priorities before decisions are made. By developing finance-validated business cases and a practical roadmap, the council can be more proactive in the decisions it makes,” he said.

The programme’s initial outputs are expected to give Solihull a ranked view of where AI could be applied across services, the level of organisational readiness, and which projects may warrant further consideration. This first phase is focused on identifying options rather than moving directly into deployment.

For local government leaders, that distinction is becoming increasingly important as councils test AI in areas that affect vulnerable residents and essential public services. In Solihull’s case, the work spans some of the authority’s most visible functions, including care services, children’s provision, public health activity, and parts of local infrastructure planning.

The council aims to use the findings to inform later investment decisions through finance-validated business cases and a practical roadmap for future priorities.



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