The Bank of England estimate for Housing Equity Withdrawal for 2008 Q4 is -£8.0 billion. The negative figure implies that individuals injected a net total of £8.0 billion into housing equity in the fourth quarter. This compares with a revised estimate of a net injection into housing equity of £5.9 billion in 2008 Q3.
Latest Bank of England estimate for Housing Equity Withdrawal (2008 Q4) is minus £8 billion. As a proportion of household income, the Quarter 4 figure is -3.3%, the lowest figure ever recorded.
The negative figure implies that individuals returned a net total of £8 billion into housing equity in the fourth quarter.
Housing equity withdrawal (HEW) is new borrowing secured on dwellings that is not invested in the housing market and represents additional funds available to finance consumption spending. It is important since the value provides a boost to income and expenditure when the figure is positive. When negative, the converse is true.
Adjusted for HEW, household incomes contracted throughout 2008 by 2.0% compared to 2007. As housing activity contracts so too does the level of equity withdrawal, squeezing household incomes and reducing consumer spending power and consumption. The trend is an additional manifestation of credit contraction and the deflationary (spending) impact on consumption and economic activity.
Bank of England Housing Equity Withdrawal