Households to cover housing costs on average are spending LVL 90 per month

05.03.2013

Results of the EU-SILC survey conducted by the Central Statistical Bureau show that monthly housing costs1 have reached LVL 90, and it is 17.2% of the household disposable income.Nevertheless housing costs have increased, for the first time since 2008 growth of the population income has exceeded the rise of the housing costs; thus housing cost ratio to the population income has diminished by 0.7 percentage points.

Total average monthly housing costs and their share in household disposable income in 2005-2012 2

 

Housing costs are leaving notable and negative influence on the household budget.Only 12% of the total household number are considering that housing costs are not burden at all.Housing costs are the heaviest financial burden on households receiving the lowest income (1st quintile3).These households in 2012 spent 34% of their disposable income to cover the hosing costs. Almost two thirds of the 1st quintile households are evaluating housing costs as heavy financial burden.

Answers to the question “Is total housing cost a financial burden to you household?'' by quintile group
(in per cent)

21.7% of the households in 2012 due to the financial difficulties have been in arrears during the last 12 months.The share of households that were in arrears once during the time period from 2008 till 2012 was stable and close to 4 percentage points, while the share of households that have been unable to pay on time twice or more has risen from 7.6% in 2008 to 17.5% in 2012.

The greatest difficulties to pay for utility bills were faced by households consisting of one adult with children aged under 17 – 44% of such single-parent families due to financial difficulties were unable to pay on time for utility bills4.

Share of households that during the last 12 months due to financial difficulties were in arrears, i.e., have been unable to pay on time for utility bills
(in per cent)

Data source of the information on housing costs is survey “European Union Statistics on Income and Living Conditions” (EU-SILC).The survey of2012 covered 6.5 thousand households and 13 thousand respondents aged 16 years and over were interviewed.  Data on 2013 will be compiled within the framework of the EU-SILC 2013 survey that will be launched in March of this year and will be conducted until the end of June.

 

Prepared by Social Statistics Department
Edmunds Vaskis
Tel.67366908

 

 

Methodological explanations

1 In EU-SILC survey housing costs include following expenditure:

  • rent for housing (only for tenants);
  • housing property tax (only for owners);
  • heating, electricity, water supply and sewerage, waste disposal, etc. payments connected with housing;
  • expenditure on current housing repair and regular maintenance;
  • expenditure on housing (not property) insurance (if such are paid).

2 Data on 2011 have been recalculated basing on the population number estimated in the Population and Hosing Census.

3 Quintile – one fifth from households, which are broken down in growing sequence according to their disposable cash income per one household member.

4 Public utilities include payments for water, gas, electricity and heat.Here also payments for waste management are included.Public utilities do not include telephone bills.