LONDON (MNI) – UK householders injected a net total of stg3.204
billion into home equity during the first quarter of 2010, data from the
Bank of England shows.
This marks the eighth consecutive quarterly net injection of
equity, although the total was slightly smaller than the fourth
quarter of 2009.
The data suggest householders are continuing to take advantage of
exceptionally low interest rates to raise the amount of equity they hold
in their homes, although the pace of increase is slowing.
The HEW data showed that as a percentage of post tax income Home
Equity Withdrawal fell by 1.3% in the third quarter, up from a 1.4%
decrease in Q4 2009.
HEW is a measure of secured borrowing not invested in the housing
market. While house prices were rising strongly during the last housing
boom, HEW was seen as a potential support for household spending,
although BOE research showed the link between HEW and consumption was
far from straightforward.
Back in Q1 2007, HEW amounted to 6.2% of post-tax income, and first
turned negative in Q2 2008.
–London newsroom: 0044 20 7634 1655; email: wwilkes@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
