EMF Publishes Quarterly Review of European Mortgage & Housing Markets Q3 2025
The European Mortgage Federation (EMF) is delighted to announce the publication of its Quarterly Review of European Mortgage & Housing Markets for the third quarter of 2025.
Produced in cooperation with the Federation’s national experts, the Quarterly Review provides the latest short-term developments in mortgage and housing markets across the European Union (EU).
Quarterly Focus
Continuing the theme of previous quarters, housing affordability, this quarter focuses on the topic of first-time buyers and the schemes designed to help them enter the housing market in Europe. The issue of unaffordable housing is a matter of great concern in the EU. It leads to housing insecurity, financial strain, and inadequate housing. It also prevents young people from leaving their parental home, impacting their mobility in the single market and limiting their labour/life opportunities.
In the past decade, homeownership in the EU has decreased overall, driven in particular by a drop in homeownership among young people. There has been an increase in Europeans living in apartments, concentrated in towns and suburbs.
It is increasingly difficult for first-time buyers in particular to enter the mortgage market and purchase their first home, with affordability being the main challenge. Sizeable deposit requirements, high monthly mortgage repayments, and a shortage of available housing all contribute to this challenge. These pressures are largely driven by higher interest rates, rising house prices, and demographic ageing. Younger buyers are particularly affected, as they often need larger mortgages due to smaller deposits and face tighter credit constraints.
Further details on national schemes supporting first-time buyers can be found in the individual country fact sheets included in this review.
Country Spotlight: Germany
For this quarter, we are delighted to feature Vincent Tran from the Association of German Pfandbrief Banks, who provides an in-depth analysis of Germany’s housing market. Notably, Germany is the only country in the EU where the majority of households live in rented properties.
EMF Country Fact Sheets
As always, we include up-to-date national factsheets offering a snapshot of housing and mortgage market developments in Q3 2025. The country fact sheets provide analytical commentary together with data tables on the following key indicators:
- Total outstanding residential mortgage lending;
- Regulation and Government intervention;
- Nominal house price indices; and
-
Mortgage interest rates.
Key highlights from the Q3 2025 Quarterly Review
In the third quarter of 2025, total outstanding residential mortgage lending increased across all countries in the EMF sample. However, gross residential lending did not rise uniformly: Cyprus, Denmark, Spain, Finland, Hungary, Italy and Sweden recorded lower gross residential lending in Q3 2025 compared with Q2 2025. Nevertheless, the overall trend remains upward.
The house price index increased sharply in Portugal and Hungary between Q2 and Q3, rising from 258,8 to 269,4 in Portugal and from 368,5 to 390,3 in Hungary. At the other end of the spectrum, Poland and Slovenia recorded declines over the same period, with indices falling from 223 to 221 and from 209.3 to 207.0, respectively.
In addition, the data confirm the downward trend in mortgage interest rates observed since 2021.
Contact:
Eva Dervaux
Research & Data Adviser
Tel: +32 472 052 217