Study finds: General housing allowance important and transparent support form for consumers
(Thomson Reuters ONE) -
SATO Corporation, Press release, 26th October 2017 at 8:30 am
According to a study conducted by Pellervo Economic Research PTT, more than 60%
of renters receiving housing allowance in Finland regard housing allowance as an
important factor affecting their lives. The general housing allowance is also
viewed as a transparent and easy-to-understand support form. Commissioned by
SATO, the City of Espoo and Finnish Tenants, the study on housing benefits from
the renter perspective was published today.
The significance of the housing allowance is high for low-income groups as
housing benefits cover more than half of the housing costs in the majority of
households among these groups. According to a survey conducted among renters in
Finland and included in the study published today, more than 60% of the
respondents regard the housing allowance as a significant or very significant
factor affecting their everyday lives.
Only just over one in four respondents regard cuts in consumption costs as a
possible alternative if the housing allowance was to be discontinued. In that
event, more than 35% of the respondents believe they would seek support from
other benefits and allowances. If the amount of housing allowance was to be cut,
changing homes is not regarded as a viable option, either. According to PTT
Economist Antti Kekäläinen, the reason for this may be that it is difficult to
find an alternative home that meets the renter's needs.
Housing allowances affect urbanisation development
Among the respondents, those most commonly claiming housing allowance are
students (around 90% students) and the unemployed (around 80% unemployed), while
more than half of those in part-time employment and of pensioners receive these
benefits. There are also some employed persons whose pay clearly does not cover
their living expenses as around 16% of respondents in full-time employment are
recipients of housing allowance.
- Any changes in housing allowance will have an adverse effect on those with the
lowest income levels as their capacities to help themselves are usually the
poorest in case changes in the negative direction take place in benefits, points
out Sirkka-Liisa Kähärä, Chair, Finnish Tenants. - Housing benefits play a major
role in the financial situation of service-sector employees in the biggest
growth centres and, consequently, affect the urbanisation development. In
addition to housing allowance, production aid is also needed to maintain a
sufficient rate of affordable housing production.
Housing allowance criteria clearer than the role of state-supported housing
production
The housing allowance is often linked with living in subsidised rental housing
as around half of the responding recipients of housing allowance live in a
state-subsidised (ARA) home. According to the study, it is easier for renters to
understand the housing allowance than the role of state-subsidised housing
production. More than 65% of the respondents claiming housing allowance regard
it as easy to apply for the allowance, while getting a subsidised home is
regarded as a process that is very difficult and even too slow. More than 300
respondents had applied for a subsidised home but only just over half of their
applications had been successful.
- On the basis of the literature review, the survey among renters and the
interviews with experts conducted, demand-based support for housing, such as the
general housing allowance, is regarded as the model that is the most
transparent, best targeted at those who need support and clearer than supply-
based types of support, says PTT's Kekäläinen.
According to the survey, supported rental homes are highly sought after, and the
most preferred type of housing among the respondents is a home in a municipal
rental housing company (32%) because of the low rent level. This is also
reflected in the fact that, according to the survey, the majority of housing
allowance recipients live either in municipal rental housing, student housing or
housing provided by some other non-profit organisation.
- There have been several studies into housing support and the effectiveness of
the support system, but in these the resident perspective has not been covered.
It is important for us to understand the everyday lives and needs of our
customers. In addition, it has often been assumed that those living in non-
subsidised homes are the biggest recipients of housing allowance. This study
shows that housing allowance is claimed evenly across the types of housing from
state-subsidised to non-subsidised and from municipality-owned to privately-
owned homes, says SATO President and CEO Saku Sipola.
Unanimity among respondents: amount of rent must be the most important factor
affecting allowance
Regardless of whether recipients of housing allowance or not, respondents were
very unanimous as regards the types of factor that should affect the amount of
housing allowance granted. Around 65% of respondents regard the amount of rent
and around 70% the proportion of rent of income as the most significant factor.
Low-income respondents in particular are in favour of the housing allowance
being based on the amount of rent.
- Almost half of the general housing allowance is targeted at single-person
households, with the second-largest recipient group being single-parent
families. The significance of support is emphasised among single-parent families
as the occurrence of low income in single-parent families is almost three times
that seen in two-parent families. This affects issues including opportunities to
spend money on children's leisure activities. One in five of Espoo's families
with children are single-parent families, says City of Espoo Housing Manager
Anne Savolainen.
About the study:
The resident perspective was included in the study on the basis of an online
survey. The study as a whole is based on a literature and statistical review,
interviews with experts and the survey among renters. The respondent target
group for the survey consisted of renters participating in the online panel of
the survey provider (Kantar TNS). The survey took place between 5 and 18
September 2017. A total of 1,020 renters responded to the survey.
For more information please contact:
Pellervo Economic Research PTT
Antti Kekäläinen, Economist
Phone: +358 40 164 8136, antti.kekalainen(at)ptt.fi
Kirsi Noro, Business Economics Researcher
Phone: +358 40 164 8369, kirsi.noro(at)ptt.fi
SATO Corporation
Saku Sipola, President and CEO
Phone: +358 40 551 5953, saku.sipola(at)sato.fi
City of Espoo
Anne Savolainen, Housing Manager
Phone: +358 40 353 3582, anne.m.savolainen(at)espoo.fi
Finnish Tenants (VKL ry)
Anne Viita, Executive Director
Phone: +358 50 588 3483, anne.viita(at)vuokralaiset.fi
SATO is one of Finland's leading rental housing providers. SATO aims to offer a
comprehensive choice of rental housing and an excellent customer experience. At
year-end 2016 SATO owned around 25,300 apartments in Finland's largest growth
centres and in St Petersburg.
We promote sustainable development and initiative through our operations and
work in open interaction with our stakeholders to generate added value. We
operate profitably and with a long-term view. We increase the value of our
housing assets through investments, divestments and repairs.
In accordance with the new reporting practice*, the SATO Group's net sales in
2016 were EUR 263.0 million, operating profit EUR 267.2 million and profit
before taxes EUR 219.4 million. The value of SATO's investment assets is roughly
EUR 3.4 billion.
*Net sales have been adjusted in accordance with the new reporting practice.
ATTACHMENT: Policy brief (in Finnish) - Asumisen tuet:
http://hugin.info/171820/R/2144812/822057.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: SATO Oyj via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2017 - 07:30 Uhr
Sprache: Deutsch
News-ID 565313
Anzahl Zeichen: 9057
contact information:
Town:
Helsinki
Kategorie:
Business News
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"Study finds: General housing allowance important and transparent support form for consumers"
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