Pursuits
ESRB Warns on Risks From Europe’s Residential Real-Estate
- Macroprudential body sees vulnerabilities in eight countries
- Brexit vote may prove to be a turning point for U.K. market
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The European Systemic Risk Board warned eight European Union countries that rapid increases in house prices and mortgage debt could jeopardize their economies.
After an EU-wide assessment, Europe’s macroprudential authority singled out Austria, Belgium, Denmark, Finland, Luxembourg, the Netherlands, Sweden and the U.K. as having “medium-term vulnerabilities” related to their residential real-estate markets. Highly indebted households are particularly vulnerable to economic shocks such as higher unemployment or a drop in incomes, it said in a report published Monday.