Hypostat 2015

Foreword
Dear Reader,
The global economic and financial landscape is rapidly evolving and modifying significantly the perspectives and expectations
of financial market players, households and regulators. The need for transparency and for a reliable source of information
on trends and dynamics is essential in a post crisis scenario to assess the lessons learnt from the past, to understand the
current situation and to design the future of European housing and mortgage markets and the socio-economic landscape.
The quantitative analysis presented in this publication aims at capturing the trends and attitudes of European lenders
and borrowers, and identifying signs of change in the value chain of housing and mortgage markets. Mortgage credit
remains one of the major drivers of real economic growth. Furthermore, given its fundamental role in facilitating access
to homeownership, it plays a vital role in the socio-economic life of citizens of the old continent, the purchase of a house
representing one of the most significant acquisitions individuals will ever make.
Against this background we are delighted to present the 2015 edition of Hypostat, the EMF-ECBC’s statistical publication
on European housing and mortgage markets. Since the publication of the first edition in 1998, Hypostat has established
itself as the industry benchmark for the quantitative and qualitative analysis in this area. It is based on intense cooperation
between financial market analysts, national banking associations and the most prominent mortgage and housing
market experts in Europe and brings together over 30 contributors, commenting on historical annual series for over
25 indicators, covering, where data is available, the 28 Member States of the European Union and beyond. By way of
country chapters, Hypostat offers the most comprehensive and accurate source of data available on the markets in
question and outlines developments observed over the past year.
Furthermore, Hypostat provides a general analysis of European mortgage and housing markets and includes external articles
focusing on different topics in each edition. This year our contributors have made an extra effort to provide you with
a brand new table for each country, adding to the wealth of information you will find in these pages. An accurate, country
by country analysis has become even more important nowadays. In these turbulent times, economic events have driven a
wedge between and within European markets. Some countries have a buoyant – bordering on overheated – situation, while
some others still struggle with their recovery. The crisis and longer-run demographic changes have furthermore influenced
housing, and, in turn, mortgage markets as well. Efficient mortgage and housing markets improve social conditions and bring
stability at the household level. Around one in four European households currently has a mortgage. The total value of these
outstanding mortgages is equal to roughly half of the GDP of the EU. Mortgage lending also plays a key role in the European
financial markets as well. Covered bonds, debt securities backed by pool of mortgage loans, represent the second largest
fixed income market in the EU, after government issued notes. As mentioned above, it is clear that EU mortgage markets are
not only central to the economic landscape of Europe, but also to the lives of millions of people. Efficient mortgage markets
enable people to improve their lifestyles at the individual level and foster growth at the national level. This is achieved through
responsible mortgage lending, which in Europe has allowed for affordable and sustainable access for EU citizens to home
ownership. Last year, we wrote that “the activity in the mortgage and housing market encourages investment and fosters
job creation in multiple sectors of the economy” and we stand by this statement. However, in order to give a full picture,
we will have to investigate how the labour market can “fix” the housing market and how social well-being can stimulate
the mortgage market. In this publication, we point in that direction. This is, though, merely scratching the surface of issues
which, in our view, require much more attention across the EU in the coming months and years.
4 | 2015 EMF HYPOSTAT