Financial stability

The risks associated with publicly subsidised housing production should be recognised and it must be possible to assess these in relation to the social objectives of such housing. In this context, there are particular financing structures whose risk tolerance in the current type of housing market downturn has not been put to the test.

Many households were under increasing financial pressure when inflation surged and interest rates were raised in the first few years of the 2020s. Essential spending rose faster than household income, which placed a strain especially on indebted households. Nevertheless, households have, for the most part, coped well with their loan servicing, and resilience must continue to be maintained in the future.