Survey results of private tenement houses in October 2005

23.02.2006

Results of the survey on private tenement houses that was conducted by the Central Statistical Bureau in October 2005 indicate progress in market relations in the utilisation of the housing stock and reveal substantial differences in the size of rent depending on the location of the residential house and its management.

 

According to the obtained data, 40% of the tenants actually pay a rent exceeding LVL 0.60 per square metre of the floor space (the highest rent for living premises as set out in paragraph 4 of the transitional provisions of the law "On the Rent of Living Premises”, provided that both parties have not agreed upon a higher rent the dwelling owner can fix in 2005 per square metre). By contrast, 4% of the tenants of private dwellings do not pay rent at all compensating it with their contribution to the maintenance of the house. 2% of the tenants of private flats in Riga and 8% in other cities and towns and in the countryside do not have to pay rent.

 

In comparison with the results of the survey in September 2004, the average rent during the year has increased by 14%.

Of the total number of private tenement flats, 73% are in the denationalised houses that have been given back to their lawful owners and 22% in the houses that have not been nationalised or otherwise alienated and in 5% of cases the tenants could not answer the question about the probable denationalisation of the dwelling.

 

Rental agreement with the current dwelling owner has been concluded in 56% of the cases. Of the rental agreements concluded, 51% of the agreements are without a specified term, 36% are concluded for a specified period longer than 1 year and 13% are concluded for a specified term of up to 1 year (inclusive).

In 44% of cases there has been a delay in concluding a rental agreement with the present owner. The main reasons for not concluding the rental agreement are the validity of the previous rental agreement with the previous owner (46% of cases; in Riga - 64% of cases) and the disinterested attitude by the owner (27% of cases).

48% of the tenants have lately encountered serious difficulties with rent and utility payments and 9% of the tenants are in debt for rent and utility payments.

34% of the tenants are planning to change the place of residence in the next 3 years.

Local government assistance in the solution of dwelling problems is necessary for 64% of the tenants of private dwellings. In Riga this opinion is held by 71% of the tenants of private dwellings.

In the opinion of tenants of the private dwellings, the most necessary assistance in the solution of their dwelling problem would be renting of the local government dwelling space (37%) followed by assistance in the purchase or construction of a dwelling space (12%), renting of a social dwelling (11%) and allocation of a dwelling benefit (11%).

Prepared by the Investment and Real Estate Statistics Section
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