This shows the rapid decline in equity withdrawal from housing in the UK.
Peaking at £18bn a year in 2008, housing equity withdrawal played an important role in financing consumer spending in the UK. As soon as house prices started to drop in 2007, equity withdrawal dried up. Banks were unable or unwilling to lend and many faced the prospect of negative equity. WIth prices falling, many have tried to pay more back to their mortgage, this has led to negative equity withdrawal.
Note: This used to be measured as mortgage equity withdrawal MEW, but, is now measured as housing equity withdrawal HEW.
Pretty clear trend! From memory, didn’t MEW account for something like £1 in every £7 spent in the UK at the peak back in 2006? I guess for now the slack in the economy has been taken up by the spare cash from tracker mortgages being so low.
This would have happened its a pity that no one for saw it, but with the rescission hitting Europe and America the hardest people were told to save save, unfortunately with this happening it did cause a negative effect on the housing market.It was bound to happen that way.