New tenure types in CEE

New tenure types in CEE Slovenia
DR SPELCA MEZNAR, ISSBS, SLOVENIA
Slovenia – 2 mio inhabitants
Total stock: 850.000 dwellings
 20% uninhabited (also black market and secondary
homes)
 90% owned by natural persons
 6% in public ownership (state & local)
 General quality of housing stock: LOW
Inhabited dwellings
tenants public
rentals
6%
user occupied
13%
inhabited dwellings tenants -
market
rentals and
others
3%
owner
occupied
78%
Rental sector
10%
public non profit
rental
private market
rental
others
20%
70%
Current demand for housing
 6.600 households on waiting list for non profit app
 2.500 in Ljubljana only
 Many vacant private dwelling
 How to stimulate private owners to enter rental
market?
 How to stimulate potential tenants to rent instead of
buying?
Housing subsidy for market rentals
 Introduced in 2009
 Beneficiaries: tenants in private (market) rental app
 Amount: difference between non-profit rent and
average (not actual!) market rent
 Payable: directly to the landlord
 Financed by the State and municipalities
eligibility
 Application for non profit rent
 Eligible for non profit rent but not awarded
 Permanent residence in the municipality where you
apply for the subsidy (1-5 years)
 A written contract registered at the public authority
 A very efficient measure to support the public task of
market rentals
 2014: 2.800 people received the subsidy (very
successful!)
 From 40 to 140 EUR per month
 “Cheap” measure for local/state budget, but big
impact for beneficiaries
downsides
 The same census as non profit rentals
 If the actual rent is higher than average market rent
 Conditioned upon permanent residence
 Contract needs to be registered (not available for
“black market” rentals)
 In Feb 2015 – austerity measures – the subsidy was
decreased in some cases