Szumilo, N;
Vanino, E;
(2018)
Are Government and Bank Loans Substitutes or Complements? Evidence from Spatial Discontinuity in Equity Loans.
Real Estate Economics
10.1111/1540-6229.12261.
(In press).
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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.
| Type: | Article |
|---|---|
| Title: | Are Government and Bank Loans Substitutes or Complements? Evidence from Spatial Discontinuity in Equity Loans |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1111/1540-6229.12261 |
| Publisher version: | https://doi.org/10.1111/1540-6229.12261 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > The Bartlett Sch of Const and Proj Mgt |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10082221 |
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