The number of people using payday loans in the UK has increased by over 4 times during the last four years, from 1.2 million in 2006 to 4.1 million in 2010. U.K. borrowers take out an average of 3.5 loans per year and the average size of a loan is an estimated £294. Just like in the United States, high late fees charged by banks, cable companies, phone companies and utility providers make payday loans a rational choice for many U.K. consumers. Compared to a $30 or $40 late fee on a small amount owed, taking a payday loan for £500 payday loan for a £100 fee makes sense. The economic downturn has hit the UK very hard and the impact has been less available credit for consumers. Therefore, many consumers are turning to payday loans as their only source of credit in these tough times.

Another driving factor behind the growth of the U.K. industry is the entrance of American companies. Companies like Quick Quid are units of large internet lenders in the US. These companies see the UK as a relatively large market with a more stable regulatory environment than many states in the U.S. The U.S. market is driven by state laws and the U.K. industry is estimated to be as big as the 3rd or 4th largest state in the U.S. So, American companies are driving innovation and demand in the U.K.

Getting a loan from a local store can be difficult and time consuming process. In the U.S., online companies cannot deliver fund to the consumer until the next day, so many consumers prefer to get their cash immediately at a storefront location. However, in the UK, consumers can usually get their funds in a matter of hours, making online cash advances an easier, more convenient option for them. The final reason online payday loans in the UK are so popular is due to the higher relative real estate costs in Great Britain. In the U.S., real estate is typically much cheaper and more readily available. Higher costs in the UK drive up the costs of stores and therefore drive many more payday lenders to the internet in the U.K. The payday loan industry in the UK is growing by leaps and bounds. There are many reasons for this growth, but the aforementioned five reasons are the major driving force behind this expansion.

The United Kingdom has different property law systems for England and Wales, Scotland and Northern Ireland. The Property law in England and in Wales comes from English Common Law System which dates back to the feudal system of land ownership. Property is something that is owned by a person or entity. English law of property is divided into two types: ‘Personal property’ and ‘Real property’. Real is any interest in land, real estates, growing plants or the improvements and developments on it and Personal is everything else.

The basic theory of English Property law of land is that all land in England and Wales is owned by the crown. The individual does not own the land but merely holds it from the Crown. When the grant of land is made to a person, he would be entitled to hold the land for a particular period of time. The word ‘estate’ refers the length of time for which the land is held. Estates were divided into two main groups: estate of freehold and estate of leasehold (before 1925, known as estate less than free hold). English law has different statutes for both unregistered and registered land. However from October, 2003 it is compulsory to register all lands.

Now, personal properties can be divided into two main categories: corporeal personal which includes items such as, animals, jewelry etc. and incorporeal personal, such as, copyrights, stocks, bonds etc. In English law of property, there are still some differences between these two types of property. Real property like land must be transferred by deed. For personal property the rules are much flexible. Real property may have different incidents like co-ownership, leasing etc. where personal property may have not. There is no absolute ownership of land of real under English law. But personal properties there are absolute ownerships. Upon death of the owner real property like land, house, shop etc. goes to the heir whereas, personal property is instead divided by laws of the Statute of Distributions. Under English law, a will of lands doesn’t need proof, but a will of personal property or of personal and real property together does.