On April 1, the new mortgage regulations came into force for the Swedish housing market. In short, the changes mean that the stricter amortization requirement has been abolished. In addition, the mortgage ceiling was raised from 85 to 90 percent. The intention has been to boost the market and make it easier for first-time buyers, among others, to enter it.
However, critics have warned that the changes would instead lead to rising housing prices and make it even more difficult for young buyers, for example, to succeed in bids.
Lack of effect
Two months after the rule changes, the effect has not materialized. Statistics from SBAB and the housing website Booli show that housing prices rose by 1 percent in May, while apartment prices, in particular, remained stagnant.
Furthermore, after adjusting for normal seasonal and other temporary effects, prices rose by a modest 0.4 percent. SBAB's chief economist Robert Boije sees the troubled global situation as an explanation:
"What happens in the outside world can affect housing prices, but it is difficult to know," he says, referring, among other things, to the uncertainty linked to the energy crisis in the Middle East.
Little change expected
At the same time, Robert Boije was among those who did not expect housing prices to rise much.
"Our input was that quite a few people would be affected by these changes, that is, they are both affected by the mortgage ceiling and covered by this extended amortization requirement. Our assessment has been that it would have a fairly small impact on housing prices," he says.
While apartment prices remained stagnant, house prices rose by 1.4 percent in May and by 0.5 percent after adjusting for seasonal effects.
House prices are therefore 7 percent below the peak level in spring 2022. Robert Boije sees it as unlikely that prices would rise sharply during the rest of 2026. Various economic incentives for households that have been launched play less of a role than how the external situation develops, he believes.
"Several of these subsidies, such as food VAT and electricity subsidies, are intended to be temporary, although we will now see whether politicians have the power to remove the changes once they have been introduced. I think that when you buy a home, it is a long-term deal," he says.
