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SEB survey: 23% of residents would like to change housing, but cannot afford it

Photo: pixabay.com.
Nearly 23% of Latvia’s residents would like to change their current housing, but are unable to afford it. This is because they either have not money to do it on their own, or cannot afford a loan, as concluded in SEB Bank’s survey.

According to results of the survey, approximately 30% of respondents would like to or already have plans to change housing in the next three years. Approximately 3% of residents intend to use a mortgage loan to change housing, whereas 3% intend to use private finances.

Around 5% of respondents mentioned they would gladly buy new housing and use mortgage loan. However, they added that they do not have savings to afford the first instalment. Approximately 18% of respondents mentioned they would like to change housing but cannot afford it.

«Around 45% of respondents aged 18 to 35 admit living in a rented apartment. It is the majority of respondents in this age group that admit wanting to change housing and being unable to afford it. This is most often because of lack of money. Altum programme’s state guarantee would be a good solution for those people to consider. With an expanded range of people for whom guarantees will be available in the future, there will also be more people able to afford a change of housing. We still face situations when people are unable to afford housing loan because of insufficient income,» said SEB Bank board member Arnis Škapars.

57% of respondents mentioned living in a housing they own. In addition, they said it was either not necessary to get a loan or the loan has already been paid off. Only 8% of respondents, mostly people aged 25 to 44, live in a home they own and pay off the loan. 18% of respondents mentioned living in a rented home and paying rent fee in accordance with market prices. 2% mentioned living in a social home or dormitory and paying rent fees below the market price. 12% of respondents mentioned living in their parents’ or other relatives’ home.

More than 1,000 residents aged 18 to 74 participated in SEB Bank’s survey.


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