Bank of England|Statistics|Statistical Interactive Database|Explanatory Notes|The Bank's Estimate of Mortgage Equity Withdrawal

Explanatory Notes - The Bank's Estimate of Mortgage Equity Withdrawal

The Bank’s estimate of mortgage equity withdrawal (MEW) is intended to measure that part of secured borrowing that is not invested in the housing market. It takes the increase in housing finance (net mortgage lending and capital grants) and subtracts households’ investment in housing (purchases of new houses and houses from other sectors, improvements to property, and the transactions costs of moving house).

So MEW is measured as:

+ Households’ net lending secured on dwellings

+ Capital grants for housing paid to the personal sector and housing associations

- Household sector investment in dwellings

- Net transfers of land to the household sector

- Household transfer costs and transfers of dwellings between sectors

Table 1 shows the identifiers for the series used. The MEW series is then seasonally adjusted using X-12-ARIMA.

Table 1:

Series	Code	Source
Net lending secured on dwellings Statistics (Table A5.10)	VTVG.Q (1)	BoE: Monetary and Financial
Capital grants to personal sector	ADCE.Q	ONS
Capital grants to housing associations	GTDI.Q	ONS
Household investment in dwellings	DLWK.Q (2)	ONS: Blue Book (Table SUP1)
Household net purchases of land (Table A41)	NSSY.Q (2)	ONS: UK Economic Accounts
Household costs associated with the transfer of ownership of non-produced assets	DLXV.Q (2)	ONS: Blue Book (Table SUP1)

Please see an article in the Spring 2001 Quarterly Bulletin and boxes on page 6 of the November 1999 and page 10 of the August 2004 Inflation Report for further details of MEW and its calculation

(1) Prior to 1990 we use the ONS series AAPR.Q.

(2) From 1989. Between 1986 and 1989 the sum of these is estimated from Household sector gross fixed capital formation (NSSU.Q) and, prior to 1986, from Personal sector gross fixed capital formation (AIKB.Q).

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