In the latest edition of Real Economy, Euronews looks at how households and economies are impacted by the housing market. House prices across Europe rose by 4.5% at the end of 2017, yet disposable incomes have failed to keep up. Higher house prices may force households to take on greater levels of debt in order to afford a property. In Sweden, for example, for more than a third of households, debt represents more than four and a half years of salary. Sweden has recently taken steps to discourage buyers from taking on more debt than they can handle. A buyer now needs a down payment of at least 15 percent of the purchase price, and each year, the buyer must amortise part of the loan. According to economist Jens Magnusson of the SEB financial services group, higher borrowing “will be sustainable as long as interest rates are low,” but an increase in interest rates would dampen consumer spending. The European Systemic Risk Board has warned Sweden and seven other EU countries about excessive property debt and overvalued housing markets, as they can impact the whole economy. Cédric Van Styvendael, the president of the 'Housing Europe' federation notes that one in every 10 Europeans spends more than 40% of their income on housing, and that this rate is increasing even more for the poorest households.