HC Deb 02 May 1989 vol 152 cc3-6W
Dr. Marek

To ask the Chancellor of the Exchequer what information he has with regard to other Organisation for Economic Co-operation and Development countries on the percentage contribution housing costs in various forms make to the calculations of a retail prices index; and what is the comparable percentage for the United Kingdom.

Mr. Lilley

[holding answer 20 April 1989]: Information on the contribution of housing costs to the consumer price indices for OECD countries is available from national statistical sources and from OECD Main Economic Indicators December 1988. The treatment varies greatly from country to country: for example, some countries include prices of fuel, water and home furnishings as part of housing costs, but others do not. There is also a variety of treatment of home ownership costs: some countries exclude these altogether, others include a measure of imputed rent, while others, like the United Kingdom, include mortgage interest payments. Available figures relate to the base year for the price indices and these differ across countries.

On this basis the information requested is as follows:

Housing Costs
Percentage weight in consumer price indices
Percentage
United States of America 42
Japan 21
Germany 15
France 9
United Kingdom 18
Italy 4
Canada 38
Austria 11
Belgium 8
Denmark 19
Finland 18
Greece 13
Iceland 13
Ireland 6
Luxembourg 0
Netherlands 16
Norway 22
Portugal 0
Spain 18
Sweden 26
Switzerland 17
Turkey n/a
Australia 14
New Zealand 21

The following indicates precisely which costs are included in the total weight given to the housing component in the consumer price indices in each of the OECD countries. These costs are divided into three categories: (a) costs in the rented sector, (b) the costs of home ownership, and (c) other costs, including in some cases fuel, water, power and home furnishings. A — indicates a zero weight for this item. The figures in brackets are the weights shown in the table.

United States (42):

  1. (a) Rent
  2. (b) Imputed rent, taxes, repairs and insurance
  3. (c) Fuel, power and home furnishings

Source:—Bureau of Labour Statistics

Japan (21):

  1. (a) Rent and repairs
  2. (b) Imputed rent
  3. (c) —

Source:—Statistics Bureau Management and Co-ordination Agency, Monthly Statistics of Japan

West Germany (15):

  1. (a) Rent
  2. (b) Imputed rent
  3. (c) —

Source: Statistisches Bundesamt, Statistisches Jahrbuch 1988.

France (9):

  1. (a) Rent and repairs
  2. (b) —
  3. (c) —

Source: INSEE, Bulletin Mensuel de Statistique March 1989

United Kingdom (18):

  1. (a) Rent
  2. (b) Interest payments, repairs, insurance and rates
  3. (c) Water

Source: Department of Employment, Employment Gazette April 1989

Note: The weight of 18 per cent. given in the answer is the latest figure, and compares with 15.25 per cent. shown in table 3.10 of the FSBR.

Italy (4)

  1. (a) Rent
  2. (b) —
  3. (c) —

Source: OECD, Main Economic Indicators December 1988

Canada (38):

  1. (a)Rent
  2. (b)Depreciation, interest payments, property taxes, insurance and repairs
  3. (c)Fuel, power and home furnishing

Source: Ministry of Supply and Services, Canadian Economic Observer

Austria (11):

  1. (a) Rent
  2. (b) Loan repayments
  3. (c)Household services

Source: OsterreichischesInstitut fur Wirtschaftsforschung, Monatsberichte June 1987

Belgium (8):

  1. (a) Rent
  2. (b)Imputed rent
  3. (c)—

Source: Institut National de Statistique, Statistiques Sociales

Denmark (19):

  1. (a) Rent and maintenance
  2. (b) —
  3. (c) —

Source: Denmark statistics, Denmark Statistical Yearbook 1988

Finland (18):

  1. (a) Rent
  2. (b) Imputed rent
  3. (c)Fuel and power

Source: OECD, Main Economic Indicators December 1988

Greece (13):

  1. (a) Rent
  2. (b) —
  3. (c) —

Source: National Statistical Service of Greece, Statistical Yearbook of Greece 1986

Iceland (13):

  1. (a) —
  2. (b) Interest payments, land taxes, rates and maintenance
  3. (c) —

Source: OECD, Main Economic Indicators December 1988

Ireland (6):

  1. (a) Rent
  2. (b) Interest payments, rates, insurance and repairs
  3. (c) —

Source: CSO, Irish Statistical Bulletin March 1983

Luxembourg (0):

  1. (a) —
  2. (b) —
  3. (c) —

Netherlands (16):

  1. (a) Rent
  2. (b)Imputed rent
  3. (c) Water

Source: Netherlands Central Bureau of Statistics, Statistical Yearbook of the Netherlands 1987

Norway (22):

  1. (a) Rent
  2. (b) Interest payments, rates, insurance and repairs
  3. (c) Fuel and power

Source: Central Bureau of Statistics, Monthly Bulletin of Statistics

Portugal (0):

  1. (a)—
  2. (b) —
  3. (c) —

Spain (18):

  1. (a) Rent
    2. 6
  2. (b) Imputed rent
  3. (c) Fuel and electricity

Source: Instituto Nacional de Estadistica, España Anuario Estadistico.

Sweden (26):

  1. (a)Rent
  2. (b) Depreciation, imputed rent, insurance and repairs
  3. (c)Fuel and power

Source: Statistics Sweden, Statistical Abstract for Sweden 1989.

Switzerland (17):

  1. (a) Rent
  2. (b) —
  3. (c) —

Source: OECD, Main Economic Indicators December 1988.

Turkey:

  1. (a) n/a
  2. (b) n/a
  3. (c) n/a

Australia (14):

  1. (a) Rent
  2. (b) Interest payments, rates, insurance and repairs
  3. (c) —

Source: Australian High Commission.

Note:The Australians have just altered the way the housing component of their consumer price index is calculated. The changed calculation reflects the fact that once the mortgage rate is above a certain level further increases do not lead to increased interest payments for the many homeowners who hold mortgages with interest rate ceilings.

New Zealand (21):

  1. (a) Rent
  2. (b) Land and house prices, interest payments, rates, insurance and repairs
  3. (c) —

Source: Department of Statistics, Monthly Abstract of Statistics.