Veen, Ilse Sanne van der (2021) Residential mortgage lending and energy-efficient homes: A study on the loan-to-value ratio in relationship to residential energy labels of Dutch households. Master thesis.
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Abstract
We are on the verge of an energy transition in the Netherlands. However, this transition seems rather problematic. Many homeowners miss funds to invest in the energy efficiency of their homes because of the sharply rising housing prices market. Therefore the question arises, to what extent the mortgage lending of Dutch households is associated with the energy efficiency of their home on the verge of the energy transition? The research problem of this study is the relationship between the loan-to-value ratio of new loans and residential energy labels. This study makes use of CLRM and the data is provided by the Dutch Land Registry Office. The main findings show that residential energy labels are negatively related to the loan-to-value ratio of new loans in the Netherlands between 2019 and 2020. In addition to this, the findings reveal that households with the most efficient dwelling have the lowest loan-to- value ratio. Followed up by households with the second most efficient dwelling, etcetera. An explanation for the higher loan-to-value ratios on less energy-efficient housing could be the maximum 106 percent loan-to-value ratio (instead of 100 percent) for sustainability upgrades. However, these higher loan-to-value ratios combined with an inefficient label might result in high mortgage- and energy expenditures. This comes with a higher risk of mortgage arrears and ultimately no improvements in the energy efficiency of the dwelling. Therefore, the findings of this study underline the earlier observed problem for households with an inefficient energy label in terms of mortgage risk and the progress of the Dutch energy transition.
| Item Type: | Thesis (Master) |
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| Degree programme: | Real Estate Studies |
| Supervisor: | Vlist, A.J. van der |
| Date Deposited: | 03 Sep 2021 11:28 |
| Last Modified: | 03 Sep 2021 11:28 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/3709 |
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