Is a high price level a systemic risk concern, an efficiency issue or a distributional problem? And, further, are macroprudential policies the best way to address house price developments if they are deemed a concern? During internal discussions in the Council, the observed high house price growth was not considered to be the main cause of concern per se.
Rather, it was risk build-up related to lending to vulnerable households coupled with the widespread use of  18 19  https://systemicriskcouncil.dk/working-areas/housing-loan-risks/conference-about-the-real-estate-marketnovember-2016/. https://systemicriskcouncil.dk/media/1057/dsrr15-cover_letter-discussion_paper_eng.pdf. Page 13 of 23  interest-only mortgages that the Council wanted to address.