December 5, 2022

Pawnbroker H&T Group boosted by the cost-of-living crunch as individuals are compelled to money in prized possessions

Document numbers are pawning off prized possessions because the cost-of-living disaster takes its toll.

Britain’s largest pawnbroker mentioned the extent of ‘pledge lending’ – the place prospects borrow cash towards invaluable objects, together with watches and jewelry – is at a document excessive.

H&T Group’s buying and selling replace shone a light-weight on the extent to which households are struggling to make ends meet as they grapple with hovering meals and power payments. 

Determined instances: Pawnbroker H&T Group mentioned the extent of ‘pledge lending’, the place prospects borrow cash towards invaluable objects together with watches and jewelry, is at a document excessive

Inflation is a 40-year excessive of 9.1 per cent and the UK is going through the largest fall in dwelling requirements since information started in 1956.

Households are additionally fighting power payments which have jumped by 54 per cent – a median of £693 – this 12 months. 

They’re set to leap an extra £800, to a median of £2,800 a 12 months, when power regulator Ofgem raises the value cap in October. 

And meals worth rises may hit 15 per cent this summer time, in keeping with a report from meals analysis agency IGD. H&T – based in London in 1897 – mentioned yesterday demand for pledge lending has been gathering tempo because the begin of the 12 months, with volumes 40 per cent above pre-pandemic ranges.

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The group’s pledge e-book on the finish of June was £84.2million, up from £48.3million a 12 months earlier.

Shore Capital analyst Gary Greenwood mentioned the hovering demand ‘displays the impression of the price of dwelling disaster’.

He added that if present traits proceed, H&T’s pledge e-book may hit £100million by the top of the 12 months as ‘the price of dwelling disaster is prone to assist continued sturdy demand for pawnbroking providers’.

H&T shares jumped 3.4 per cent, or 11p, to 332.5p yesterday. 

They’ve soared by greater than 16 per cent this 12 months because the financial outlook has deteriorated within the wake of Russia’s invasion of Ukraine. It’s price £133million, greater than double the £54million it floated at in 2006.

Greenwood mentioned: ‘Their prospects are usually folks on the decrease finish of the demographic, struggling to get finance from mainstream banks. 

Pawnbroking is without doubt one of the few locations they’ll go to borrow. Their funds are being squeezed comparatively greater than most in the mean time and so they want cash. One approach to get that’s borrowing towards a pledgable merchandise.’