Press Release

Private rental dwellings in 2006

Results of the survey on private rented dwellings that was conducted by the Central Statistical Bureau in October 2006 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, 48% of the tenants actually pay a rent exceeding LVL 0,72 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 2006 per square metre). By contrast, 8% of the tenants of private dwellings do not pay rent at all compensating it with their contribution to the maintenance of the house. 3% of the tenants of private flats in Riga and 13% in other cities and towns and in the countryside do not have to pay rent.

Average rent paid per square metre of the floor space in September 2006

In comparison with the results of the survey in September 2005, the average rent during the year has increased by 59%.

The average rent per square metre of the total floor space

Of the total number of private tenement flats, 66% are in the denationalised houses that have been given back to their lawful owners and 25% in the houses that have not been nationalised or otherwise alienated and in 9% of cases the tenants could not answer the question about the probable denationalisation of the dwelling.

Average rent per one square metre of the total floor space

Rental agreement with the current dwelling owner has been concluded in 61% of the cases (in September of 2005 – 56%). Of the rental agreements concluded, 43%(51%) of the agreements are without a specified term, 38%(36%) are concluded for a specified period longer than 1 year and 19%(13%) are concluded for a specified term of up to 1 year (inclusive).

In 39% 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 disinterested attitude by the owner in 33% of cases and the validity of the previous rental agreement with the previous owner in 25% of cases.

Satisfaction of tenants with management of the building

41% 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.

43% 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 52% of the tenants of private dwellings. Of them 46% would like to rent the local government dwelling space, followed by 19% who would like the assistance in the purchase or construction of a dwelling space, 17% of those who would like to get allocation of a dwelling benefit, 15% of people who would like to rent a social dwelling.

Prepared by the Investment and Real Estate Statistics Section
Tel. 7366969
Ilgvars Kaparkalējs

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