housing developments in european countries - Department of ...

Section 4
Outcomes
Outcomes Section 4
Table
4.9.1
Public Expenditure on Housing in European Countries, 1999-2004
Table
4.9.1
(continued)
Country Category Currency 1999 2000 2001 2002 2003 2004
(Proj)
France Public expenditure Aid to buildings € million 1,847 1,811 1,770 1,705 Nav Nav
on housing Social rental 432 443 457 446 Nav Nav
of which Social ownership 956 899 894 886 Nav Nav
Improvement of private stock 459 469 419 373 Nav Nav
Aid to people 12,840 12,810 13,317 13,488 Nav Nav
State 5,384 5,346 5,446 5,349 Nav Nav
Social schemes 7,457 7,465 7,871 8,139 Nav Nav
Tax expenditure 6,642 9,177 8,966 9,280 Nav Nav
Total 15,945 18,453 18,607 19,124 Nav Nav
Ireland Public capital Social housing € million 401.6 613.1 969.9 1164.6 Nav Nav
expenditure Supports for low income
on housing home buyers 167.6 154.9 226.4 250 Nav Nav
House purchase and
improvement loans 29.3 38.6 49.2 89 Nav Nav
Private housing grants 46.3 59.4 70.3 80.4 Nav Nav
Other housing 7.6 11.6 12.6 13.1 Nav Nav
Total 652.4 877.6 1,328.4 1,597.1 Nav Nav
Netherlands Government Rental subsidies € million Nav Nav 1,483 1,544 1,612 Nav
Expenditure Subsidies for urban
on the 4 Main regeneration Nav Nav 591 64 318 Nav
Housing Subsidies Location-specific subsidies Nav Nav 61 60 66 Nav
Energy performance
regulation Nav Nav Nav Nav 75 Nav
Poland Central Cooperative loans interest
Government buy-down PLN Million 609.2 414.3 927.7 524.4 262.3 Nav
Expenditure Cooperative
on Housing loans payments Nav Nav Nav Nav Nav Nav
Guaranteed payments to
house savings booklets’
owners 911.4 1,368.4 2 227 760.3 590.2 Nav
Mortgage fund 8.9 Nav Nav Nav Nav Nav
National housing fund 150 242.5 248.9 472.5 455.9 Nav
Thermal modernisation
fund 5 12 3 36.8 5.3 Nav
Subsidies for interest on loans
related to removal of flood
effects 1.2 3.2 4.5 7 4.8 Nav
New housing policy tool
– fixed interest housing loan Nav Nav Nav Nav 33.2 Nav
Subsidies to municipalities for
housing allowances payments 416.7 547.4 546.9 399.9 551 Nav
Refunds to housing
co-operative candidates 0.6 Nav Nav Nav Nav Nav
Total 2,103 2,587.8 3,958 2.200.9 1,902.7 Nav
Portugal State Expenditure Public rental € million 110.1 130.8 124.5 87.6 110.1 Nav
on Housing Private rental 100.4 85.5 86.7 87.7 100.4 Nav
Rental 210.6 216.4 211.2 175.3 210.6 Nav
Subsidies 408.1 366 345.3 410.3 408.1 Nav
Tax deductions 348.7 350 355.6 357 348.7 Nav
Acquisition of Housing 756.8 715.9 700.9 767.3 756.8 Nav
Total 967.4 932.3 912 942.6 967.4 Nav
Subsidies for new construction Nav Nav Nav Nav 18.3 16.48
Country Category Currency 1999 2000 2001 2002 2003 2004
(Proj)
Slovakia % of total State Subsidies for refurbishment N/a Nav Nav Nav Nav 0 1.4
expenditure Loans (State housing
on housing which development fund) Nav Nav Nav Nav 30.1 35.4
is devoted to Interest subsidies Nav Nav Nav Nav 5.9 10.5
Housing allowances Nav Nav Nav Nav 10.9 01
Premium building saving contracts Nav Nav Nav Nav 32.3 36.2
Contribution for the acquisition of
government apartments for
government employees Nav Nav Nav Nav 2.5 0
State guarantees Nav Nav Nav Nav 0 0.1
Real investments Nav 53.75 17.8 Nav Nav Nav
Spain Direct Central Grants €million Nav 1,632.4 988.4 Nav Nav Nav
Government Subsidised interest rates Nav 800.4 872.7 Nav Nav Nav
Expenditure Neighbourhood remodelling
Madrid Nav 88.5 86.7 Nav Nav Nav
on Housing Transfers to regional
and local authorities Nav 367.9 219.5 Nav Nav Nav
Direct State assistance for
deposit (AEDE) Nav 23.2 249.2 Nav Nav Nav
Total Nav 2,912.4 2,416.5 Nav Nav Nav
Note: Data for the following countries are not available: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark,. Estonia, Finland, Germany, Greece, Hungary, Italy, Latvia,
Lithuania, Luxembourg, Malta, Romania Slovenia, Sweden, Turkey and the United Kingdom
14.4 billion DKK, of which 9.8 billion was devoted to
individual housing benefits, 3.9 billion to subsidised
housing construction and 0.8 billion to redevelopment
and urban renewal. In the same year expenditure on
housing accounted for 1.9% of total public
expenditure. Danish government has frozen taxes in
recent years. In addition, it has introduced a new type
of bond entitled ‘Loans with interest-only periods’.
The new lending scheme allows the lender up to 10
years exemption from paying loan instalments, and at
the end of the lifetime of the loan there may be a
remaining debt corresponding to the forfeited
instalments.
The implementation of the current Estonian housing
development plan (see Section 2.8) is financed from the
State budget, from the government’s extra budgetary
ownership reform reserve fund, and from the resources
of the KredEx Foundation. In recent years annual
government expenditure on this area has declined.
The 2003 budget for the implementation of the
housing development plan totalled €3.2 million.
In 2004 the corresponding sum had declined to €1.3
million.
In Finland, on the other hand, State expenditure on
housing is much higher than this. In 2001, housing
subsidies accounted for 4.4% of total public
expenditure in this country – which is one of the
highest levels in the EU. In 2002, the budget for
housing in Finland was distributed as follows: housing
allowances (€892 million), production subsidies (€270
million) and mortgage interest relief (€420 million).
At the same time, the methods used to finance social
housing in this country have been gradually reformed
in recent years. Up to now the vast majority of funding
for this sector has been provided in the form of State
loans and direct aid through the mechanism of the
State Housing Fund. While this source of funding will
continue to be available the emphasis is shifting
towards commercial loans with State guarantees and
State interest subsidies.
Details of recent trends in public expenditure on
166 European Union Report
Regular National Report on Housing Developments in European Countries
167