UK 2Q Housing Equity Withdrawal -GBP7.0B Vs -GBP7.3B 1Q

LONDON -- U.K. households injected a net GBP7.0 billion of equity back into their homes in the second quarter of 2009, the fifth straight quarter that there has been a net injection, the Bank of England said Friday.

That was little changed from the GBP7.3 billion repayment in the first quarter of this year, a figure that was revised lower from an originally reported GBP8.5 billion. Between April and June last year, homeowners put a total of GBP1.6 billion of equity back into their homes.

The data show the portion of borrowing that is secured on residential property but isn't invested in the U.K. housing market, instead used to finance consumption or invest in financial assets.

Although the U.K.'s economic outlook is improving, consumers' confidence remains below average levels, suggesting they are likely to continue for some time putting money back into their homes rather than withdrawing it.

Housing equity withdrawal in the second quarter represented -2.9% of U.K. residents' post-tax income. That compares with -3.1% in the first quarter of the year and -0.7% in the second quarter of 2008, the data showed.