Correspondence

UK response to the ESRB warning on real estate sector

The ESRB has issued a warning to 8 countries regarding financial stability risks in their real estate sectors. The UK’s response is below.

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The European Systemic Risk Board (ESRB) is responsible for macroprudential oversight of the EU financial system and the prevention and mitigation of systemic risk. In pursuit of its macroprudential mandate, the ESRB monitors and assesses systemic risks and, where appropriate, issues warnings and recommendations. The ESRB has undertaken a forward-looking assessment of financial stability risks in residential real estate markets across the European Union and has decided to issue warnings to eight countries, including the UK. These warnings have been published today on the ESRB’s website.

The Chancellor has written a letter to the Secretariat of the ESRB setting out the action that the UK authorities are taking to monitor and address financial stability risks in the UK residential real estate market.

Published 28 November 2016