On housing maintenance expenditure in 2010

31.03.2011

Data of the survey “Community Statistics on Income and Living Conditions1” (EU-SILC) carried out by the Central Statistical Bureau in 2010 show that share of housing maintenance expenditure2 in disposable income has grown from 14% in 2009 to more than 15% in 2010.

Total housing expenditure on average per month and its share in household disposable income in 2005-2010

Housing maintenance expenditure has reduced from LVL 90 per household monthly in 2009 to LVL 85 in 2010.It should be considered that in EU-SILC survey the payments actually made were found out and they did not include the debts for rent and payments for public utilities.

Households with the lowest income (1st quintile3) have noticeably higher housing expenditure burden.These households in 2010 spent 30% of their disposable income to cover the hosing maintenance expenditure, but households with the highest income (5th quintile) spent 11%.The same housing expenditure burden as households of the 1st quintile faced also households of single persons aged 65 years and over, they spent 29% of their disposable income to cover the housing maintenance expenditure.Households of one adult with children aged until 17 years are spending one fourth (25%) of their disposable income to cover the housing maintenance expenditure.Volume of the housing expenditure to be paid actually is significantly higher, because 39% of such single-parent families due to the lack of money have debts for public utilities4.

In 2010 the share of households, for which housing maintenance expenditure arise financial difficulties, has increased noticeably.The share of households, for which such payments is a heavy burden, has grown from 35% in 2009 to 41% in 2010.Such a high housing expenditure burden has not been observed since 2005, when the EU-SILC survey was launched.Totally 86% of the households (84% a year before) answered that housing maintenance expenditure is a heavy burden or a slight burden for them.

Among households of the 1st quintile the answer that housing maintenance expenditure is a heavy burden in 2010 was received from 60% of respondents (50% in 2009).

Breakdown of the answers to the question ‘’Does total housing expenditure arise financial difficulties to you household?'', in quintiles (in per cent)

Regardless the financial aid provided by the local governments, under the conditions of general population income reduction the volume of arrears for public utility services continued to grow.Also the data of the EU-SILC survey indicate that.The share of households having arrears for public utility services during the last 12 months reached 22% (17% in 2009).Single-parent families, in which one of the parents is bringing up children, as well as couples with children have more such arrears.

Share of households, which during the last 12 months because of the lack of money had arrears for public utility services (in per cent)

In 2010 the volume of arrears has risen in single parent households (from 31% to 39%), as well as in households of single persons aged less than 65 years (from 22% to 27%, respectively).

Total number of households, which during the last 12 months had arrears for public utilities, according to the EU-SILC 2010 survey data, reach 188 thousand, and it is 28% more than a year before.

Prepared by Social Statistics Department
Tel.67366908
Edmunds Vaskis


Methodological explanations

1 Survey was carried out from March to July 2010, surveying 6.3 thousand households, and all questions on housing maintenance expenditure were asked considering the seasonality of heating.

2 In EU-SILC survey the volume of housing maintenance expenditure includes following expenditure:
- mortgage interest payments (only for owners);
- 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 for current housing repair and regular maintenance;
- expenditure on housing (not property) insurance (if such are paid).

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.