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

Thomas, R. Guy (1996) Indemnities for long-term price risk in the UK housing market. Journal of Property Finance, 7 (3). pp. 38-52. ISSN 0958-868X. (doi:10.1108/09588689610127145) (KAR id:29798)


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
DOI/Identification number: 10.1108/09588689610127145
Subjects: H Social Sciences > HG Finance
Divisions: Divisions > Division of Computing, Engineering and Mathematical Sciences > School of Mathematics, Statistics and Actuarial Science
Depositing User: Guy Thomas
Date Deposited: 07 Jul 2012 12:26 UTC
Last Modified: 16 Nov 2021 10:07 UTC
Resource URI: (The current URI for this page, for reference purposes)

University of Kent Author Information

Thomas, R. Guy.

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