OREANDA-NEWS. April 24, 2012. The latest DNB Latvian Barometer study has shown that those people who are thinking about buying a new home at this time do not consider the price of the home or its maintenance costs to be the main issue, reported the press-centre of DNB.

Instead they are thinking about the technical condition of the building, the quality of construction, the quality of the infrastructure, and the issue of whether the building is properly insulated to prevent loss of heat.  This situation has changed over the past several years, because a similar study in the summer of 2009 found that the purchase and maintenance costs of a home were the most essential criteria in making the choice.

 In August 2009, 47% of respondents said that the technical condition of the building and the quality of its construction were important factors, while this year these seemed to be essential requirements among 56% of respondents.  The percentage of respondents saying that the availability of infrastructure is important rose from 45% to 51%, while the percentage speaking to the building’s insulation rose from 23% two-and-a-half years ago to 41% this year.  The cost of the home was an important criterion for 46% of respondents in 2009, but this year only 37% of respondents marked it as being of importance.  The importance of ongoing maintenance costs was mentioned by 55% of respondents in 2009, but only 43% of respondents this year.

People were asked about their current homes, and 63% said that they are satisfied with the size of their home, while 61% were positive about the surrounding infrastructure.  Less common were positive evaluations of building managers (38%) and the overall technical condition of the building (39%).  Respondents were more likely to be satisfied with their home this year than back in 2009, although experts who have examined the results of the study suggest that this may be because given the long-lasting economic complexities of the country, people are simply making peace with their existing living conditions.

63% of respondents said that they are not planning to buy or rent a new home over the past year, but one-third or so did say that they want to improve living conditions – most often by improving or renovating their existing home (26%).  Only 1-2% of respondents planned to buy or rent a different home.  Asked why, such respondents said that they want a larger or, on the contrary, smaller home than the one which they have now.  They also spoke of better quality in terms of their home or a more advantageous location thereof.

Respondents were also asked about whether they are able to cover housing costs (rent, utility payments, etc.).  The proportion of respondents who said that they can cover housing costs while saving money in other areas decreased by 6% over the past three years.  Also declining was the proportion of those respondents who say that they can cover housing costs, but also that they will probably accumulate debt during the heating season (the latest study was conducted in February).  There has also, however, been an increase of 5% of those respondents who can cover housing costs without special difficulties.  At the same time, the percentage of those who have already accumulated debt has not changed – 12% in August 2009 and the same percentage this year.

Debt among some residents traditionally endangers the ability of other residents to receive housing-related services (particularly heating services), and as the end to this year’s heating season was drawing to a close, respondents were more likely to express views about how such situations can be addressed.  Half of the respondents in the DNB Latvian Barometer study said that it is necessary to revisit tariffs on services (controlling them more strictly, reducing relevant taxes, etc.).  The second most often mentioned solution was doing things to reduce housing costs.  Insulation of buildings or replacement of windows in common use rooms are mentioned ways of doing so., and 40% of respondents called for such processes.  A similar percentage (39%) said that there should be greater social subsidies for poorer residents.  Only 16% supported the idea that state or local government budget resources should be used to cover the debts of those who have not paid their bills.

Despite the certain increase in optimism in relation to housing, the fact is that the monthly indicators of the DNB Latvian Barometer have declined after several months of an increase.  Since late last year, there has been a slightly higher percentage of respondents who believe that the overall situation in the country is moving in the wrong direction (from 61% in December to 64% in February).  There are fewer respondents who believe that the country is on the right track (21% in December, 16% in February).  The percentage of respondents who believe that the economic situation in Latvia at this time is a bad one increased by 4% in comparison to December.

At the same time, however, the predictions of local residents about the development of the economic situation of the country and the respondents themselves have become a bit more optimistic since the end of 2011.  A few months ago, 34% of respondents thought that the economic situation would be deteriorating during the next few months, but only 26% said so in February of this year.  Asked about their family budget over the next year, increasing number of respondents made positive forecasts – 18% believe that the material situation of their families will improve.  Most respondents, however, believe that the economic situation and the material condition of their families will not change much over the next year.

The DNB Latvian Barometer is a recognised monthly sociological study which examines events in an important area.  There are also permanent questions which are posed every month to track changes in the mood of respondents from month to month.