REGIONAL DIFFERENCES IN HOUSING POLICY IN LATVIA LIGA RASNACA UL Faculty of Social sciences,

Content Conceptual framework of Housing policy Development of HP in Latvia Latvia housing statistics in EU Regional statistics of HP in Latvia

Housing policy 1.Housing is a permanent structure for human habitation 2.Housing policy=guideline provided by government which is aimed at meeting housing need and demand of the people through a set of appropriate strategies including fiscal, legal and regulatory frameworks (Agbola, 1998) 3.Housing policy typology: G.Esping-Andersen, R. Donnison, R.Titmus (residual or embryonic) 4.Housing policy in Latvia has been implemented via central and local government

Urban policy Public policy Economic and finance policy Social policy Housing policy

Housing Shelter Home

Housing functions Implementation of Economic Social Family Personal needs Most EU housing policy focus on three broad areas (European Parliament, 1996) Accesibility Affordability Quality

Implementation of housing policy in Latvia Housing policy in Latvia has been implemented via central and local government During the last 21 year since the re-gaining of independence and six years after the accession to the European Union (EU), the housing policy in Latvia has remarkably changed due to various reforms: – the processes of privatization, denationalization; – the socio-economic changes -building boom, -mobility of population, -socio-economic crisis.. These processes have affected the implementation of housing policy in regions in various ways

Development of privately owned dwellings in CEE countries following the privatisation process* Country% dwellings privately owned (before privatisation) % dwellings privately owned (end of reference period) Reference period Bulgaria Latvia Lithuania Slovakia Poland Romania * Housing Europe Review 2012, CECODHAS,Brussels, 2011.

Share of housing costs in disposable income in the CEE and EU average*(2009) CountryShare of income (%) Bulgaria 19.7 Latvia 18 Lithuania 15.9 Slovakia 22 Poland 21.1 Romania 25.3 EU * Housing Europe Review 2012, CECODHAS,Brussels, 2011.

Overcrowding rate Average in EU 17.8% Highest Latvia 57.7% Romania 55.3% Lowest Cyprus 1% Netherlands 1.7%

Dwellings with bath/shower, hot running water and central heating (as % of dwelling stock) Highest Finland ( ) France ( ) Lowest Latvia ( ) Romania ( )

Housing deprivation (EC Europe 2020, Eurostat, EU- SILC 2010) An average 6% of EU population suffered from severe housing deprivation Northern countries: less than 2% (Finland, Norvey, Sweden, Denmark) CEE: less affected Slovakia 4.2% Most affected countries – Latvia 22.7% – Romania 28.6% EU-SILC (Statistics on Income and Living Conditions, 2009

Share of social housing in housing stock (EU)(%) Highest Netherlands 32 Austria 23 Denmark 19 Czech Republic 17 Lowest Latvia 0.4 Greece 0 Estonia 1 Cyprus 0

Housing policy in Latvia: declared priorities The aim of housing policy is: – to promote quality and availability of housing, – providing normative base for effective administration of dwelling houses, – to facilitate organization of rent sector in territories of local municipalities, – supporting energy-saving measures in residential houses. The accountable for housing policy is Ministry of Economics, Department of Construction and Housing policy The central focus from Ministry of Economics is paid to issues of administration, environment, security and health of individual and preservation of dwelling quality. (Low On Dwelling administration, 2009) During crisis (till 01, 06, 2011) central government support housing allowances (20%)

Households that money could not afford to cover the cost of housing (2011, EU-SILC) 24.0 % of all household 43.6 % from those in poverty risk

Households in regions that money could not afford to cover the cost of housing (2011, EU-SILC) RigaRiga district VidzemeKurzemeZemgaleLatgale Can not pay for facilities, for credit Can not pay for heating

Financial priorities C=central government, L= local government Heat insulation for apartment buildings – LVL (1LVL~0,7 EURO) Heat insulation for social buildings LVL Public shelters Municipality buildings construction (till 2013) – Social buildings in Riga LVL – Rent buildings in Riga LVL

Social housing in cities and counties L Regional unitsNumber of social apartment buildings Number of social flats outside social buildings Number of persons in social housing Riga Other cities Counties Cities without social housing buildings/flats 21 Counties without social housing buildings/flats without any social housing Total

Debts for public facilities (L) ~ LVL ~ households The problem: if some have not paid for the service, the operator may refuse to receive all home residents

Housing allowances 2011 © (Review of housing assistance in municipalities 2011, Ministry of Economics) Regional unitNumber of allowances MoneyMoney per one household (LVL) Riga Other cities Counties Total

Conclusions The main priority of Latvia central government is support for energy-saving measures Social housing policy in Latvia is responsibility of local governments Local governments have uneven possibilities to implement housing policy Administrative arrangements do not encourage restriction of social inequality in regional units Housing policy in Latvia could be characterized as residual (embryonic)

Izmantotā literatūra 1.A Housing Policy Paper, World Bank, Andrews D., et.al. Housing Markets and structural policies in OECD countries. Pieejams: httpwww.oecd.org 3.Housing Europe Review 2012, CECODHAS, Brussels, Housing policy in the EU Member States. Pieejams: 5. European Network of Housing Research (ENHR) Pieejams: 6. Housing policy in OECD countries. Pieejams: Mājokļu politika Latvijā. Informācija VRAPLM mājas lapā. Pieejams: 8.Mājokļu politika Latvijā. Informācija EM mājas lapā. Pieejams: 9.Mājokļu politika un tās instrumenti. Rīga, LHZB Pickwance C. Housing and Housing Policy. In: Social Policy (Baldock, J. et.al.), Oxford, OUP,2007, pp Renaud B., International Financial institutions and housing policy transfers. ENHP, Delft university, Pieejams: 12.The Growth Report: Strategies for Sustained Growth and Inclusive Develpment, WB, The Cities Alliances. Pieejams: 14.Tsenkova S., Turner B., The future of social housing in Eastern Europe: Reforms in Latvia and Ukraine. Adequate & Affordable housing for all. Toronto, UN-Habitat. Pieejams: 16.Urbanization. WB Sector Working Paper, WB, Yeates N., (ed.) Understanding Global Social Policy, Bristol: The Policy Press, 2008.

Contacts: Līga Rasnača, Thank you for attention!