Residential property auction prices

Large movements in house prices over the past three years have re-emphasised the challenge of analysing their movements. This article presents data on properties sold at auction that may offer insights into short-term dynamics in the housing market.

Housing equity withdrawal since the financial crisis

The amount of housing equity withdrawal (HEW) has swung from being significantly positive before the financial crisis and recession, to negative over the past few years. The net effect of a chain of housing transactions is typically a large equity withdrawal. The fall in the number of housing transactions is therefore likely to have been a key driver of the fall in equity withdrawal since the financial crisis. There is little sign that, at the aggregate level, households are making an active effort to pay down debt more quickly than in the past.

The financial position of British households: evidence from the 2010 NMG Consulting survey

The UK economy has begun to recover over the past year but households’ financial positions remain under strain. Elevated unemployment, weak earnings growth and restricted credit availability still pose a problem for some households. But the low level of Bank Rate has continued to bear down on mortgage interest payments for some borrowers. This article examines evidence from the latest survey of households carried out for the Bank by NMG Consulting in late September, which shows how these and other changes have affected households’ budgets and spending decisions. The burden of unsecured debt was higher than in the past and concerns about debt levels had increased, leading some to save more in order to reduce indebtedness. A special set of questions this year showed that households’ awareness of the fiscal consolidation measures was quite high. They were concerned about the impact on their finances, although the majority had yet to take any action in response.