Bank of England release HEW figures for Q3

Bank of England release HEW figures for Q3

The Bank of England statistics released today show that Housing Equity Withdrawal stands at -£6.1bn for Q3 in 2010, compared to a figure of -£5.8bn (revised from the previous published figure of -£6.2bn). The HEW measure turned negative in Q2 2008. HEW, as a percentage of post-tax income was -2.4% compared to -2.3% in Q2 2010 (revised from the previously published -2.5%).

The BSA have also released their figures today showing that savings balances held at mutuals increased by £0.6bn in November 2010, following a decrease of over £1bn in October. They show a net receipt of £0.4bn, excluding interest credited to accounts.

Commenting on the figures, Adrian Coles, Director-General of the BSA, said:

"Savings flows can be quite variable on a month to month basis, and though it is pleasing to see balances held at mutuals increase in November it remains to be seen whether this is the beginning of a sustained trend. However, 2011 looks set to be another challenging year for retail deposit takers as household finances remain tight and the Bank Rate is likely to be held at its record low for much of the year."

The gross mortgage lending by mutuals for November was £2bn, the same as October with approved mortgages of £1.9bn, up on October’s figure of £1.8bn.

Commenting on the mortgage figures, Mr Coles said:

"Gross lending by mutuals was broadly flat in October, despite activity usually dropping off at this time of year. However, activity in the mortgage market next year is likely to continue to be relatively subdued because of challenges for lenders in raising funds for lending and reduced demand from mortgage borrowers until the outlook for the economy and labour market becomes more positive."

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