1

Owner-Occupied HousingSummary of the pilot

Item 5 of the Agenda

D4 – Price StatisticsHICP Working GroupLuxembourg 23-24 October 2007

OOH 2

Summary of the pilot1. Manual

2. Data

3. Evaluation

4. Stage 3 of the pilot

5. Legal basis

OOH 3

MANUAL Technical Manual on OOH

– Focus on “how to technically compile the index”

– Build the manual around COICOP OOH and Net Acquisition

– More coherence with HICP principles

Version 1.4: well developed, can be used by MSs in the final phase

Handbook on Real Estate Price Indices– Describe the methods and sources currently employed

– An inventory of national practises

– Identification of different uses of HPIs and definition of their target indices

OOH 4

DATA Within the pilot following price index series were to be

produced:– All dwellings index

• New dwellings index• Existing dwellings index

– Additional acquisition cost index– HICP including OOH index– Building land price index (by DE and SI only)– Additionally, UK and NL provided construction cost indices

combined with necessary weighting information enabling Eurostat to calculate EU aggregates

OOH 5

Series available to Eurostat

CY DE EL ES FI FR IT NL PL SI SK UK

1 All dwellings  *               *      

2 New dwellings                        

3 Existing dwellings                       **

4 Acquisition costs                        

5 HICP inclusive OOH                        

* can be derived, ** delivered upon request

OOH 6

50

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200

1996

Q1

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Q3

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Q1

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2007

Q1

All dwellings New dwellings Acquisition costs Major repairs (construction cost index) HICP

Graph 1: UK series

OOH 7

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1996

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2007

Q1

All dwellings New dwellings Existing dwellings HICP

Graph 2: FI series

OOH 8

95

100

105

110

115

2000

Q1

2000

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2000

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2001

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2006

Q4

All dwellings New dwellings New w/o land Old dwellings Aqcuisition costs Land HICP_OOH HICP

Graph 3: DE series

OOH 9

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1995

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1995

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1996

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2007

Q1

All dwellings New dwellings New w/o land Old dwellings Construction prices HICP

Graph 4: NL series

OOH 10

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1996

Q1

1996

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1997

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1997

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2007

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UK FI NL NL_no_L DE DE_no_L

Graph 5: New dwellings – UK, FI, NL, DE

OOH 11

50

100

150

200

1996

Q1

1996

Q3

1997

Q1

1997

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FR UK FI NL DE

Graph 6: Old dwellings - FR, UK, FI, NL, DE

OOH 12

90

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150

2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1

CY EL PL SK

90,0

100,0

110,0

120,0

130,0

140,0

150,0

2005Q4 2006Q1 2006Q2 2006Q3 2006Q4 2007Q1

CY EL PL SI SK

Old dwellings – CY, EL, PL, SI, SK

New dwellings – CY, EL, PL, SK

OOH 13

Data - conclusions Result of the pilot is positive – the data gives good basis

for analysis of the net acquisition approach in general Data gaps exists – as reported beforehand

– Not all series delivered– Short series in some cases– Additional acquisition costs needs sharpening– More effort needed in the fields of land prices and major

repairs Need for continued efforts -> pilot stage 3 participation

Eurostat will produce aggregate experimental series by the end of 2007

OOH 14

Evaluation Eurostat’s evaluation underway Based on the final reports and the OOH questionnaire Eurostat will continue with the evaluation as follows:

– Evaluation at Eurostat – finished after one week– Countries' check of the evaluation – 10 working days– SG comments – 5 working days– Synthesis by Eurostat – 5 working days

A meeting with the pilot countries to discuss the evaluation results and the manual (Proposal: end November – early December)

OOH 15

Stage 3 of the pilot – final phaseAIM Widest possible coverage so that every EU MS would have tested

the concept in practise and would be ready for a regular provision of data in end-2009

TOOLS Methodology

– Manual– Treatment of land; econometric study on separation of the land price

component from the total dwellings price Grants

– common programme, know-how sharing, support Implementing regulation?

OOH 16

Stage 3 of the pilot – final phaseGRANTS: 3A: CY, DE, EL, ES, FI, NL, SI, SK, (FR, IT, PL, UK) (8/12)

– Final evaluation of the applications; on Thursday– Agreements signed; mid-November

3B: AT, BE, IE, LU, PT (5); – Call for proposals out; end-October– Applications in; end-November– Agreements signed; before end-December

3C: BG, CZ, DK, EE, HU, LT, LV, MT, RO, SE (10)– Call for proposals out; early 2008