New valuations will be implemented and updated every second year starting in 2020. The new tax system replaces a nominal tax freeze of property taxation with proportional taxation, maintaining a progressive element for the most valuable homes. No changes have been made to mortgage interest rate deductibility. Households with debt-to-income ratios above 400% are required to fix interest rates for at least five years if the loan-to-value ratio is above 60%. Thus, locally there are some concerns whether house prices are increasing faster than warranted by disposable income growth and low interest rates, thereby elevating debt-to-income ratios for new homeowners (Systemic Risk Council, 2017[i6i). This prompted the authorities to tighten financial regulation by reducing access to risky loans for households with high debt relative to income from January 2018 (Table 3).