Indemnities for long-term price risk in the UK housing market

Thomas, R.G. (1996) Indemnities for long-term price risk in the UK housing market. Journal of Property Finance, 7 (3). pp. 38-52. ISSN 0958-868X. (Full text available)

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http://dx.doi.org/10.1108/09588689610127145

Abstract

Discusses the features which distinguish the market for residential property from the markets for other assets. Proposes that financial institutions should offer house buyers indemnity policies which pay out an amount related to any fall in the level of a general index of house prices, on the sale of the house at a loss at any time during the mortgage term. To facilitate hedging the risk of a portfolio of such policies (and therefore, the pricing of the policies), a market in 'perpetual futures' on indices of housing assets is proposed. Discuss possible users of these contracts, and outlines further research.

Item Type: Article
Subjects: H Social Sciences > HG Finance
Divisions: Faculties > Science Technology and Medical Studies > School of Mathematics Statistics and Actuarial Science > Actuarial Science
Depositing User: R.G. Thomas
Date Deposited: 07 Jul 2012 12:26
Last Modified: 13 Mar 2013 19:49
Resource URI: http://kar.kent.ac.uk/id/eprint/29798 (The current URI for this page, for reference purposes)
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