Danish Home Price Spike Puts Central Bank on Alert for Stability

Soaring house prices in Denmark’s capital risk spilling over to the rest of the country and threatening financial stability, the nation’s central bank warned.

The move comes after apartment prices in Copenhagen surged some 20% in the 12 months through October, according to data from Boligsiden. It also follows the government’s announcement of a plan earlier this month to allow 40-year mortgages covering up to 80% of a property’s value to help first-time buyers.