LONDON (MNI) – UK homeowners injected record amounts of equity, in
cash terms, into their properties in the second quarter of the year,
according to Bank of England data.
Since June 2008 the BOE housing equity withdrawal (HEW) data have
shown net injections, with the pace of the injections hitting record
levels late last year and this year. They picked up to 3.5% of post tax
income in the fourth quarter of 2010 and have run at that pace since.
The latest data showed Q2 HEW of minus Stg9.146 billion. That
equity injection, up from a revised minus Stg8.894 billion in Q1, is the
largest on record, with the data series stretching back to 1970.
The injection as a share of post tax income, at 3.5%, matched the
series low.
With mortgage interest rates at, or near, record lows across a wide
range of products homeowners have been paying down secured debt.
Housing equity withdrawal is a measure of secured borrowing not
invested in the housing market. It is the net result of increases in
mortgage lending and capital grants minus household investment in
housing.
–London newsroom: 0044 20 78627491; email: drobinso@marketnews.com
[TOPICS: M$B$$$,MABDA$,MABDS$]
