Report to the Financial Stability Council

News 30 July 2015

When representatives of the Government, Finansinspektionen (the Swedish Financial Supervisory Authority), the Riksbank and the Swedish National Debt Office met on 15 June in the Financial Stability Council, the authorities all contributed reports as bases for discussion. The joint report is being published now.

The driving forces behind household indebtedness

Housing prices and household debt have increased rapidly in Sweden over the past 20 years and concern over this situation is increasing. To understand the current situation, Finansinspektionen, the Riksbank and the Swedish National Debt Office have together analysed the causes of the increase in housing prices and debts during the spring.

The joint analysis points to the following six factors having a decisive significance for developments:

  • Falling interest rates and rising incomes
  • Growing population and rapid urbanisation
  • Limited supply of housing in metropolitan areas and growth regions
  • Changes in taxation of property
  • Good credit terms and conditions for households
  • Increased home-ownership