Pockets of risk in European housing markets: then and now

Arbeitspapier

Using household survey data, we document evidence of a loosening of credit standards in Euro area countries that experienced a property price boom-and-bust cycle. Borrowers in these countries exhibited significantly higher loan-to-value (LTV) and loan-to-income (LTI) ratios in the run up to the financial crisis, and an increasing tendency towards longer-term loans compared to borrowers in other countries. In recent years, despite the long period of historically low interest rates and substantial house price increases in some countries, we do not find similar credit easing as before the crisis. Instead, we find evidence of a considerable change in borrower characteristics since 2010: new borrowers are older and have higher incomes than before the crisis.

Object Details

• ISBN: 978-92-9472-073-3
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ESRB Working Paper Series ; No. 87

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; Financial Forecasting and Simulation ; Financial Institutions and Services: Government Policy and Regulation ; Real Estate Markets, Spatial Production Analysis, and Firm Location: Other
• Subject: real estate markets ; macroprudential policy ; systemic risk ; financial crises ; bubbles ; financial regulation ; financial stability indicators

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kelly, Jane ; Le Blanc, Julia ; Lydon, Reamonn
• Event: Veröffentlichung
• (who): European Systemic Risk Board (ESRB), European System of Financial Supervision
• (where): Frankfurt a. M.
• (when): 2019

Further information

• DOI: doi:10.2849/694
• Handle: http://hdl.handle.net/10419/193594
• Last update: 10.03.2025, 11:44 AM CET