New reforms to decrease the risk of a housing asset bubble in Sweden

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The ESPN Flash Reports are produced by the European Social Policy Network (ESPN) established in 2014 to provide the European Commission with independent information, analysis and expertise on social policies. The topics presented in the Flash Reports are identified by ESPN experts in the light of significant developments in their countries, or in some cases suggested by the Commission.

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Summary:

Swedish house prices and household debts have increased dramatically over a long period, increasing the risk of producing a housing bubble. New legislation was implemented in June 2016, making amortisation mandatory for all new mortgage loans. Further policy reforms, with different distributional consequences, are also being discussed.

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