Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 07/06/2023
Author OECD
Published By OECD
Edited By Saba Bilquis
Uncategorized

Policies for quality housing at an affordable price in Lithuania

Policies for quality housing at an affordable price in Lithuania

Policies for quality housing at an affordable price in Lithuania

The document titled “Policies for Quality Housing at an Affordable Price in Lithuania” provides a comprehensive assessment of the current housing policy framework in Lithuania, focusing on the challenges of housing affordability and quality. It outlines existing support schemes and offers recommendations for improving access to quality housing, especially for low-income households and young families.

Overview of the Housing Market

Lithuania’s housing market faces significant challenges, characterized by a predominance of owner-occupied, multi-apartment buildings that are often energy inefficient. Despite relatively low average household spending on housing, rising property prices have made it increasingly difficult for many families to afford quality homes. The report emphasizes that while policymakers have made efforts to enhance housing conditions, more decisive actions are necessary to address the growing demand for affordable housing.

Key Challenges

Affordability Issues

A major concern highlighted in the report is the lack of affordable housing options. Many households struggle to find suitable accommodations due to high prices and limited availability. The report notes that approximately 56% of Lithuanians believe there is insufficient affordable housing, with 71% calling for stronger government intervention to improve the situation.

Quality of Housing

The quality of existing housing stock is another significant issue. Much of Lithuania’s housing was built before 1990 and lacks modern energy efficiency standards. This not only affects living conditions but also contributes to higher utility costs for residents.

Fragmented Policy Framework

The report points out that Lithuania’s housing policies are fragmented, lacking a cohesive national strategy. Various ministries manage different aspects of housing support, leading to inefficiencies and gaps in service delivery. The absence of a comprehensive approach hinders effective responses to homelessness and inadequate housing conditions.

Current Housing Support Schemes

Financial Assistance Programs

Several initiatives exist to support low-income households:

  • Direct Financial Support: Programs such as rental compensation and energy cost subsidies provide financial assistance to eligible tenants. These schemes are means-tested, ensuring that support reaches those most in need.
  • Social Housing Initiatives: The government has aimed to increase social housing availability through various programs. However, the supply remains limited, with social housing accounting for less than 1% of the total housing stock.

Assistance for Young Households

To assist young families in purchasing their first homes, Lithuania has introduced means-tested subsidies aimed at lower-income groups. These initiatives are designed to make homeownership more accessible but face challenges related to funding and implementation.

Recommendations for Improvement

The report outlines several key recommendations aimed at enhancing the effectiveness of housing policies in Lithuania:

  1. Develop a Comprehensive Housing Strategy: A unified national strategy should be established to address all facets of housing, including construction, management, and support for vulnerable populations.
  2. Increase Social Housing Supply: Policymakers should prioritize expanding social housing options by revising planning regulations and increasing funding for new developments.
  3. Enhance Support Services: Providing additional support services such as job training and financial counseling can help individuals transition from homelessness or unstable living situations into permanent housing.
  4. Encourage Municipal Housing Development: Local governments should be incentivized to develop municipal housing projects aimed at essential workers like teachers and healthcare professionals who struggle with affordability near their workplaces.
  5. Strengthen Monitoring and Evaluation: Implementing robust mechanisms for monitoring the effectiveness of housing policies will help identify successful strategies and areas needing improvement.

Conclusion

The document concludes that addressing the challenges of housing affordability and quality in Lithuania requires a multifaceted approach involving coordinated efforts across various government sectors. By implementing comprehensive policies that consider the diverse needs of residents, Lithuania can improve access to quality housing and ensure that all citizens have safe and affordable living conditions. The recommendations provided aim to guide policymakers in fostering a more inclusive and responsive housing market that meets the needs of its population effectively.

Policies for quality housing at an affordable price in Lithuania

Further reading: Housing Solutions for People who are homeless Lithuania – National Report
[PDF] 3 Policies for quality housing at an affordable price in Lithuania oecd-ilibrary
Policies for quality housing at an affordable price in Lithuania | Policy Actions for Affordable Housing in Lithuania | OECD iLibrary

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