Why higher house prices lead to higher borrowing
Ahlfeldt, G. M.
, Szumilo, N. & Tripathy, J.
(2 October 2024)
Why higher house prices lead to higher borrowing.
British Politics and Policy at LSE.
, Szumilo, N. & Tripathy, J.
(2 October 2024)
Why higher house prices lead to higher borrowing.
British Politics and Policy at LSE.
The UK housing market has experienced a dramatic rise in house prices and mortgage debt over recent decades, both of which have outpaced average income growth. Gabriel M. Ahlfeldt, Nikodem Szumilo and Jagdish Tripathy show that much of the increase in mortgage debt can be attributed to homebuyers being compelled to borrow more in order to afford adequately sized homes.