Home equity withdrawal in the UK: dragging consumption flow
The housing market creates a lot of economic momentum. Explicitly, residential construction (part of the I in Y = C + I + G + NX ) contributes to GDP, but there are all sorts of implicit positives as well via consumption. Buying a home leads to increased spending on household items, furniture, traveling expenses, etc. Appreciation of a home’s value leads to positive wealth effects on consumption. Home-price appreciation increases the value of the collateral held on a mortgage. The ow