–Adds Detail To Version Transmitted At 0854 GMT
–UK Q2 Housing Equity Withdrawal -Stg6.188 bln Vs -Stg5.305 bln Q1
LONDON (MNI) – In the second quarter of this year the UK saw its
largest housing equity injection since Q1 2009, Bank of England data
showed.
The UK has now seen equity injections in every quarter since Q2
2008, as households take advantage of low interest rates to boost
equity.
The BOE data showed there was an injection of stg6.188 billion in
housing equity in Q2, up from the Q1 injection of stg5.305 billion.
The net equity injection of Stg6.188 billion was equivalent to 2.5%
of post-tax income.
Housing equity withdrawal was a popular way of getting money out of
properties when prices were rising, but with prices falling borrowers
have been injecting equity into housing, taking advantage of low
interest rates. This implies it has become a drag on consumers’ income.
Housing equity withdrawal, previously termed Mortgage Equity
Withdrawal by the Bank of England, 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 7862 7491; email: wwilkes@marketnews.com
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