LONDON (MNI) – Housing equity withdrawal (HEW) data for the fourth
quarter of 2009 showed householders continuing to inject, rather than
withdraw, money into housing – but at a decelerating rate.
Householders injected a net total of stg4.038 billion in the fourth
quarter, the seventh consecutive quarterly injection, down from stg5.059
billion in the third quarter and the smallest injection since the
stg1.226 billion in the second quarter of 2008. Q2 2008 was the first
injection in the current cycle.
The data, issued by the Bank of England, suggest that while
householders are continuing to take advantage of exceptionally low
interest rates to increase capital in their properties, the rate of
capital increase is slowing.
The HEW data showed that as a percentage of post tax income HEW
amounted to -1.6% in the fourth quarter, up from -2.0% in the third
quarter, and again the lowest reading since the second quarter of 2008.
HEW is a measure of secured borrowing not invested in the housing
market.
HEW peaked at 8.5% of post-tax income in the fourth quarter of
2003.
–London newsroom: 0044 20 7634 1655; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$$BE$]
