Milestones in 25 Years of Housing Finance in Belgium

The really big contradiction: homeownership discourses in times of financialization

“…Across the board, policy stakeholders consider the Belgian housing finance system and practice to be 'conservative', and this is explicitly seen as a good thing (see also Winters & Van den Broeck, 2016). Most mortgages have full amortization and scheduled payments, with most households knowing exactly what they have to pay throughout the lifetime of the entire mortgage contract.…”

Financialization within the contemporary economic geography of Belgium

“…However, where in the past cheap land and relax planning regulation spurred this model increased land scarcity and stricter planning rules has put pressure on this housing model due to rising land costs. Increasing residential real estate prices has been further spurred by an increased willingness of banks that started securitisation programmes to borrow, low interest rates and policy changes making interest rates partly deducible, making housing less affordable and giving rise to more urban forms or residential real estate (Damen et al, 2014;Winters and van den Broeck, 2016;Romainville, 2017). This makes it quite likely that especially among first time home buyers and in specific, more expensive, urban areas processes of financialization could be observed, for instance exemplified through high loan-to-values.…”

Maintaining an Efficient and Equitable Housing Market in Belgium

“…The high share of owners reflects that homeownership is traditionally viewed as the ideal housing tenure as it is perceived to provide the highest degree of housing security, privacy and self-determination and to reduce housing costs after retirement. Tax deductions provide further financial incentives, especially after the tax reform of 2005 (Winters, 2013). Increasing house prices and the growing difference with rents slowed down acquisition by especially lower income groups, and since 1976 only the two richest income quintiles in Flanders have been contributing to the overall growth in homeownership.…”