Proportunity's Algorithm Deposits Support Gen Rent

26/10/2018

UK startup Proportunity could help Gen Rent get on the housing ladder, by finding the right house using a machine-learning algorithm that predicts the rise of property value, supports them in getting the money arranged for a downpayment, as well as help applying for mortgages.

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UK-based startup Proportunity is helping Gen Yers with one of their greatest challenges: property ownership. The company developed a machine-learning system that forecasts the fluctuations of property value to help new buyers find the right house in an area that it expects to rise in value in the near future. Moreover, Proportunity helps them with the required 20% downpayment to secure a house, providing the 15% once buyers have the initial 5% to put ahead. The company’s main revenue comes from buyers returning the 15% within five years with interests based not on fixed rates, but on the new value of the property. Proportunity also helps them apply for a loan-to-value mortgage for the remaining 80%.

Only 25% of young adults in the UK who were born in the late '80s have managed to buy a home by the age of 27, compared with a third of those born earlier that decade. The widening gap between real wages and housing prices – which have raised seven times faster than incomes in the last two decades – makes getting on the housing ladder extremely difficult. Gen Yers are often portrayed as more inclined to instant gratification rather than settling down, but when it comes to housing, it seems like they would actually like to be able to own their house, as nine-in-ten still see it as an important life milestone and a sensible, stable option. Proportunity eliminates the hurdle of having to put ahead the whole 20% of the property value for the 38% of Gen Yers who are saving buy a home.

This article was first published by our research partners, Canvas8.

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