Over-indebtedness The housing perspective
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HOUSING EUROPE 1 Over-indebtedness The housing perspective Workshop: Household over-indebtedness in the EU in the context of the crisis, the way forward Brussels, 6 December 2011 [email protected]
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Over-indebtedness The housing perspective Workshop: Household over-indebtedness in the EU in the context of the crisis, the way forward Brussels, 6 December 2011 [email protected]. Housing bubble at the heart of current crisis. - PowerPoint PPT Presentation
Transcript of Over-indebtedness The housing perspective
HOUSING EUROPE 1
Over-indebtedness
The housing perspective
Workshop: Household over-indebtedness in the EU in the context of the crisis, the way forward
Brussels, 6 December 2011
HOUSING EUROPE 2
Housing bubble at the heart of current crisis
Subprime crisis in the US triggered the financial crisis
Burst of housing bubble in the US but also Ireland, Spain…
HOUSING EUROPE 3
Housing trends in the EU
Over the last two decades, increase in: home ownership rates housing prices mortgage loans
Source: OECD
Source: Eurofund, EQLS
European households’ distribution across tenures
HOUSING EUROPE 4
Mortgage indebtedness in Europe
Residential mortgage debt to GDP ratios in the EU 27
EU average: from 32% in
1998 to 52.4% in 2010
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Housing repossessions
England: 65 000 homeowners facing repossession this year, highest since 1992. About 425 000 borrowers at least three months behind with their home loan payments by the end of this year.
Ireland: one-in-nine homeowners are now finding it difficult to keep up with monthly payments and are either officially in arrears for more than 90 days or have struck a deal with their banks to restructure the mortgage.
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Cost of housing in Europe
Housing-related expenditure has increased considerably in Europe over the last decade and now represents the highest share of consumer spending, making up an average 22.9 % of total household consumption expenditure, up from 20.4 % in 2000.
HOUSING EUROPE 7
Rising prices of housing and energyNominal house prices, 1998-2010
Gas prices for European households, 2005-2011
Source: European Mortgage Federation, HYPOSTAT (2010)
Source: EUROSTAT
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Housing costs per household type and income level
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Good practices from the social housing sector
Avoiding housing repossessions: mortgage relief schemes
(England, Italy, Spain..) Promoting finance inclusion of social housing tenants and tackling
borrowing from ‘loan sharks’ (Moneyline Cymru, My Home Finance) Increasing financial awareness: money advice services
