housing developments in european countries - Department of ...

Section 1
Introduction and Summary
Introduction and Summary Section 1
Table
1.4.6
Mortgage Interest Rates in European Countries, Various Years
Table
1.4.7
House Prices in European Countries, 1999-2003
Country Year Mortgage Interest Rate (%)
Austria 2002 Average 5.13; 1 year fixed rate: 5.16 to 5.92; 1 to 5 year fixed rate: 4.58 to 4.94; more than 5 year fixed rate: 4.86 to 5.39
Belgium 1999 20 year fixed rate: 7.4; 10 year fixed rate: 6.55
2002 20 year fixed rate: 5.62; 10 year fixed rate:6.10
2004 Variable rate: vary from 3.5 to 6.5
Bulgaria 2000 4
2001 4.6
2001 4
Cyprus
Recent
years From 6 to 8
Czech Republic 2002 6.2
Estonia 2003 Beginning of the year: 7.4 (EEK denominated), 6.8 (€ denominated). End of the year: 4.6 (EEK denominated), 5.3
(€ denominated)
Finland 2004 Rate in January: 3.21 (new mortgages), 3.51 (existing mortgages)
France 1998 6.60 to 6.10
2000 6.4 to 5.90
2002 62 to 5.89
2003 3.55 to 5.20
Greece 2001 6.5 (standard nominal floating rate)
Germany 2003 Rate for 10 year mortgage loans: 5
Ireland 2002 End of the year, standard variable mortgage rate: 3.85 to 4.7
2003 End of the year, standard variable mortgage rate: 3.3 to 3.6
Italy Nav 20 year fixed rate: 5.50 to 6.50; variable rate 3.30 to 4; mixed rate: 4 to 5.50
Latvia Nav 20 year mortgage for 75 to 85% of the property value: 6.5 to 12.
Lithuania 2003 3.5 to 4.5
Luxembourg 2003 Interest rate for commercial mortgages in August: 3.85; interest rate for social loans in August: 2.85
Malta 2004 Base interest rate: 3
Netherlands 2003 Interest rate for a 10 year State loan: 4.1
Poland 2002 Central bank discount interest rate: 5.75; Commercial bank interest rates: 7
Portugal 2001 6.1
2002 5
2003 4.4
Romania 2004 ROL denominated mortgages: 17 to 35; € denominated mortgages: 7.5 to 14; US$ denominated mortgages: 7.18 –12.5
Slovakia 2001 Average lending rate of commercial banks: 10.22
Country Category 1999 2000 2001 2002 2003
Belgium Number of dwellings sold 75,469 69,082 68,276 70,893 Nav
Average sale price (€) 76,800 79,700 83,600 89,100 Nav
Czech Republic Average purchase price per m_ for family homes (CZK) Nav 948 1,006 1,110 Nav
Denmark Single family houses (1,000 DKK) 955 1,047 1,105 1,144 Nav
Owner occupied apartments (1,000 DKK) 716 810 908 984 Nav
Finland Annual nominal price increase (%) Nav Nav Nav 8 6
France Average price per m_ for apartments (€) 1,965 2,025 2,114 2,245 Nav
Sale price of single family houses (€) 136,700 154,300 159,600 172,000 Nav
Ireland Average sale price of new dwellings (€) 148,521 169,191 182,863 198,087 224,567
Average sale price of second hand dwellings (€) 163,316 190,550 206,117 227,799 264,898
Italy Increase in real estate purchase prices (%) Nav Nav Nav 8 3
Latvia Average apartment price – 1 room, cities (LVL) Nav Nav Nav Nav 9,200
Average apartment price – 2 rooms, cities (LVL) Nav Nav Nav Nav 20,450
Average apartment price, 3 rooms, cities (LVL) Nav Nav Nav Nav 28,150
Luxembourg Price of single family houses (excluding land) Nav 269,200 279,900 Nav Nav
Price of apartments (excluding land) Nav 122,000 125,800 Nav Nav
Malta Average sale price – all dwelling types (MTL) Nav 67,250 Nav Nav Nav
Netherlands Average sale price of owner occupied dwellings (€) Nav 197,000 Nav 223,000 Nav
Spain National average price per m 2 – all dwellings (€) Nav 907.2 1,046.9 1,220.9 Nav
Sweden Change in index of house prices (base 1990 = 100) 117 130 140 149 Nav
United Kingdom Change in index of house prices, first quarter (base Q1 2000=100) 72.1 83.6 92.1 100
123.4
Note: Data for the following countries are not available: Austria, Bulgaria, Cyprus, Estonia, Greece, Germany, Lithuania, Poland, Portugal, Romania, Slovakia, Slovenia and Turkey.
2002 Average lending rate of commercial banks: 9.43
2003 Average lending rate of commercial banks: 8.1
Spain 2001 effective mean mortgage interest rate for all credit institutions: 4.852
2002 effective mean mortgage interest rate for all credit institutions: 4.380
2002 effective mean mortgage interest rate for all credit institutions: 3.458
Sweden 2002 Central bank interest rate for February: 2.5
Turkey Nav 12 months: 2.25; 24 months: 2.45; 36 months: 2.15
United Kingdom 2000 Bank of England Base Interest Rate: 6.0
2001 Bank of England Base Interest Rate: 4.0
2002 Bank of England Base Interest Rate: 4.0
Note: Data for the following countries are not available: Denmark, Hungary, Slovenia. In some countries a significant proportion of mortgages are denominated in foreign
currencies. Where this is the case details of the interest rates levied on mortgages of this type are also supplied.
A significant number of countries did not specify whether mortgage interest rates were fixed or variable.
the data is that the proportion on household income
devoted to housing costs is significantly higher in the
long-standing 15 EU member States than in the new
member States and applicant countries. However,
additional information examined in Section 4 of this
report indicates that, in terms of housing affordability,
these two regions of Europe are converging. Section 4
also reveals that in most European countries lowincome
households devote a higher proportion of their
income to housing costs than their higher income
counterparts.
The high levels of owner occupation in a majority of
European countries mean that mortgage interest rates
and house prices are a key determinant of housing
affordability. TABLE 1.4.6 illustrates the recent trends in
relation to the first of these issues. It reveals that there
has been a substantial reduction in interest rates in
many of the long-standing EU member States, to the
extent that in some cases interest rates are currently at
a historic low. The timing of these reductions in
mortgage interest rates is coincident with the adoption
16 European Union Report
Regular National Report on Housing Developments in European Countries
17