Homeowners increased equity by £7 billion in final quarter of 2010

Homeowners injected £7 billion more equity into their homes than they withdrew in the final three months of 2010 - the largest net injection of equity since records began in 1970.

The Bank of England said Housing Equity Withdrawal (HEW) was -£7.0 billion over the quarter (HEW refers to any secured borrowing that is not used for house purchase or home improvements).

Since it`s a negative figure, that means that homeowners put more in than they took out - that they were more focused on repaying their mortgage debt.

The Guardian reports that by comparison, there was a far higher proportion of equity withdrawal between 1997 and the first quarter of 2008, with £13.8 billion withdrawn in the first quarter of 2007 alone.

An expert at debt management company Gregory Pennington said: "Equity withdrawal used to be common when house prices were increasing during the housing boom. Falling house prices and tighter lending criteria have made this more difficult, and these figures show that people are now more focused on repaying their mortgage debt, rather than borrowing."