Government assistance program in the housing sector in Lithuania Available to Purchase

The centralised system of apartment buildings was destroyed and replaced by a market‐type procedure of acquiring dwellings as private property. Privatisation started in Lithuania in 1991. At the beginning of 1996, 94 per cent of dwelling stock was privatised. One million two hundred thousand dwellings in Lithuania (including individual houses) with common space of 75,581,280 sq.m. existed ‐ that is 343 flats per capita. Physical lack of dwellings is the main problem. That is confirmed by number of families registered in municipalities in waiting lists for state support in order to afford dwellings. At the beginning of 1998, 96,661 families were included in the waiting lists for the support. Quantitative housing indicators are better in rural areas. However, lower qualitative indicators describe by provision with municipal service: water supply, sewerage, hot water, district heating. The urban population was not satisfied with size (living space), thermal and noise isolation characteristics. In this report Lithuanian household income and expenditures are shown for each of the ten income deciles. The affordability is greater in urban areas than the same deciles situated in the rural areas. Amendments to the Law on Housing Provision of the Republic of Lithuania were introduced on 21 October 1997. The main changes are presented in the article. Local government support in the housing sector of Vilnius is also described. The state government is responsible for the strategy in housing sector as well as government assistance. The main duties should be divided between state and local government. Social housing is the solution for needy people on condition of market economy, and financial support must be brought to the target groups of people.