Szumilo, Nikodem and Vanino, Enrico 
ORCID: 0000-0002-4740-1501
(2021)
Are government and bank loans substitutes or complements? Evidence from spatial discontinuity in equity loans.
Real Estate Economics, 49 (3).
968 - 996.
ISSN 1080-8620
Abstract
This article studies the impact of an increase in the limit of a direct equity loan provided by the U.K. government to finance mortgage deposits on aggregate mortgage lending by banks. It uses the spatial discontinuity methodology and takes advantage of the natural experiment which occurred when the limit of equity loans increased in London after the reform of the Help-to-Buy (HTB) scheme. By comparing postcode sectors on the opposite sides of the London boundary, we measure the impact of the new policy on very similar housing markets. The results show that higher equity loans increase aggregate mortgage lending by banks.
| Item Type: | Article |
|---|---|
| Official URL: | https://onlinelibrary.wiley.com/journal/15406229 |
| Additional Information: | © 2018 American Real Estate and Urban Economics Association |
| Divisions: | Geography & Environment |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
| Date Deposited: | 30 May 2022 10:12 |
| Last Modified: | 02 Nov 2024 18:06 |
| URI: | http://eprints.lse.ac.uk/id/eprint/115236 |
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