Housing maintenance expenditure and its influence on financial situation of household

12.02.2010

Data of the survey on Income and Living Conditions (EU-SILC) 2009 carried out by the CSB within the framework of the Community Statistics allows to find out the influence of housing maintenance expenditure on household financial situation.

Housing maintenance expenditure during the last five years has almost doubled, and on average per month every household in 2009 spent LVL 87 for this purpose. Since 2005 the share of this expenditure had a trend to reduce, but in 2009 it slightly grew and reached 13.4% of the household disposable income (in 2008 – 13.1%).

Total housing maintenance expenditure on average per month and its share in disposable income of household in 2005 – 2009 

 

 

For the poorest households the housing expenditure is heavier burden than for households of other quintiles. Households belonging to the lowest - 1st, quintile group in 2009 spent 29% of their disposable income to cover the housing maintenance expenditure, but households belonging to the highest - 5th, quintile group spent almost 9%.

In 2009 the share of households, for which it is a heavy burden to cover the housing maintenance expenditure, has increased. Share of households finding this expenditure a heavy burden has grown from 28% in 2008 to 35% in 2009. Situation is similar to one in 2005, when 36% of households described the housing maintenance expenditure as a heavy burden. In 2009 half (50.4%) of the respondents in households belonging to the 1st quintile mentioned that housing maintenance expenditure is a heavy burden (in 2008 – 46%).

 Distribution of answers to the question '' Is total housing cost a financial burden to your household?'' by quintile groups, 2009
(per cent)

 

 

Data of the EU-SILC 2009 show that 17% of the households had arrears for public utility services (during the last 12 months) (in 2008 - 11%). Single parent families as well as families with 2 adults and children have more such arrears.

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

 

 

In single person households consisting of persons aged 65 and over, which are more subjected to poverty risk, arrears were not so common. Timely payment of housing maintenance expenditure arise difficult financial situation to households, because almost a half (45%) of these households characterised housing maintenance expenditure as a heavy burden.

Total number of households, which during last 12 months has public utility arrears, according to the data of EU-SILC 2009 reached 145 thousand, and it is 1.5 times more than a year before.

 

Prepared by the Household Budget Statistics Section
Intars Abražuns
Tel. 67366996

 

Methodological explanations

EU-SILC 2009 was carried out in April – June

Expenditure related to housing maintenance is following:
- 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).

Payments for public utility services include payments for water, gas, electricity and heating. Also payments for the waste disposal are included. Telephone bills are not included in payments for public utilities.

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