Regulations strangle demand for mortgages

The air has gone out of the mortgage market since the Czech National Bank began enforcing new restrictions on who qualifies for the product. Sales director of Next Reality Jiří Vagner told E15 that December's numbers would be "tragic" and that his sales staff had empty desks. There was a rush of deals in the run-up to the October change of rules as consumers hurried through their applications. Banks have been processing these applications until recently, meaning that the numbers were still looking strong, but that's now ended. Two out of three clients no longer qualify for mortgages, warns Vagner. There's been less of an increases in price of flats in Prague as the average price for a square meter in new projects rising 9 percent y-o-y in August to CZK 102,100.