During Q4 2011 housing equity grew by £8.47bn, just £4m more than the previous quarter.
Housing equity figures by the Bank are calculated on the net difference between the different ways in which individual households might inject or withdraw housing equity.
For example, a homeowner might take out a further advance on their mortgage and so withdraw housing equity.
Another homeowner might make improvements to their home and so inject housing equity.
Steve Wilkie, managing director at Responsible Equity Release, said: “The relentless deleveraging of mortgage debt continued during the fourth quarter.
“Most people aren't actively overpaying their mortgages, as often the money isn't there. It's simply that many households have no option but to pay down their debt.”
Wilkie added that for borrowers with no or very little equity, all that could be done was to meet monthly mortgage payments.
He said: “Remortgaging is not an option. Inevitably over time that brings downs a household's mortgage debt level.
"The forced conservatism many people find themselves in now is at least enabling them to rebuild the equity in their homes.
"In the long-term that can only be a positive, for both their personal finances and the wider economy."
