1. 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 alice.pittini@housingeurope.eu

2. 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…

3. 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

4. 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

5. HOUSING EUROPE 5 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.

6. HOUSING EUROPE 6 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.

7. HOUSING EUROPE 7 Rising prices of housing and energy Nominal house prices, 1998-2010 Gas prices for European households, 2005-2011 Source: European Mortgage Federation, HYPOSTAT (2010) Source: EUROSTAT

8. HOUSING EUROPE 8 Housing costs per household type and income level

9. HOUSING EUROPE 9 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

10. HOUSING EUROPE 10 … Thank you for your attention! alice.pittini@housingeurope.eu