Helping to reduce home repossessions
An economic forecasting model developed by academics at the Institute for New Economic Thinking at Oxford Martin School has influenced government policy makers and is being used by key financial institutions. Professor John Muellbauer and Dr Janine Aron have been able to demonstrate that even moderate rises in the mortgage interest rate can have an important impact on the housing market, considerably increasing the number of repossessions.
The forecasting model is now being used by government departments, and has influenced government policy regarding mortgage holders who are in arrears with their payments. It has also influenced modelling work at at least one major UK bank and at the Bank of England.