Changes in household consumption, which accounts for more than half of gross domestic demand expenditure, can have a significant impact on output and employment growth. This Economic Letter looks at the main drivers of household consumption, paying particular attention to the impact of the...

This Letter attempts to assess the potential impact of implementing the recently proposed proportionate loan-to-value ratio on the wider housing market. Using a dual micro and macro simulation strategy, we find evidence for some moderate negative impacts of the LTV cap on house prices and...

This paper analyses how developments in the housing market affect consumer spending. Using aggregate data, we show that housing wealth exerts a positive influence on consumption. Whilst informative, the aggregate results not allow us to identify housing wealth effects separately from credit...