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Home > Statistics > Housing Equity Withdrawal (HEW) - 2012 Q4

Housing Equity Withdrawal (HEW) - 2012 Q4

03 April 2013

This will be the last publication of this statistical release, as described in Bankstats, January 2013, “Changes to money and credit statistical releases” available at HEW data series will continue to be available on the Bank’s Statistical Interactive Database, to the same publication timetable.


In seasonally adjusted terms, the Bank’s measure of housing equity withdrawal (HEW) in 2012 Q4 was -£8.6bn (Table A). HEW as a percentage of post-tax income was -3.1% in 2012 Q4, compared to -2.9% for 2012 Q3.
Table A: HEW

The negative figure indicates a continued injection of housing equity by households overall, with the net flow of lending secured on dwellings remaining weaker than their investment in housing.  The flow of secured lending remained positive (Table A).

The decline in HEW – and move to injections of housing equity - since the start of the financial crisis (Chart 1) has not been associated with an increase in repayments of secured debt.  Chart 2 shows that gross secured loan repayments have fallen since that time, which has reflected both lower housing market activity and a reduction in remortgaging. An article in the 2011 Q2 Quarterly Bulletin explains that the fall in housing equity withdrawal since the financial crisis is likely to reflect a fall in the number of housing transactions, with little sign that households in aggregate are making an active effort to pay down debt more quickly than in the past (see Reinold, K, ‘Housing equity withdrawal since the financial crisis’, Bank of England Quarterly Bulletin, 2011 Q2, pages 127-133). 

Link to Chart 1: Housing equity withdrawalLink to chart 2: Gross repayments of lending secured on dwellings seasonally adjusted - long run
Click on the above images to enlarge
Housing equity withdrawal (HEW) is classed as the balance of effects on the stock of housing equity from:
  1. Changes in the stock of secured lending when households take out or repay debt.
  2. Changes in the stock of housing wealth, e.g. when new properties are built or improvements are made to existing properties.
The stock of housing equity can also change as a result of revaluations of the stock of housing wealth due to changes in house prices, but this is not included in HEW.
For further details on the definition of HEW, please see the Explanatory Notes. Historical time series can be accessed through the Statistical Interactive Database.


Table A: Housing Equity Withdrawal (HEW) and lending secured on dwellings


Revisions to Housing Equity Withdrawal
  PDF Version   (10KB) 


Comments and Queries
Any data enquiries should be directed to
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If you have any comments/queries with regard to this release please email us and we will be pleased to help.
2013 Q1 data available: 03 July 2013
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