Norway Poised to Relax Rules to Fight House Price Deflation

Norway is moving closer to easing mortgage lending standards as the nation’s deflating property market prompts concern among lawmakers that existing regulations are too tight.

Real estate prices, which have doubled over the past decade and touched a record high this year, are now dropping faster than the central bank had predicted. The Conservative-led government, which won power in September, says it’s now looking into raising the amount banks can lend to borrowers to 90 percent of a property’s value, from 85 percent previously, in an effort to support first-time buyers.