Chapter 3, Article 15 · Commission Implementing Regulation (EU) 2023/1470

Contents

Article 15Purchases of newly built dwellings and existing dwellings new to households#

1.Member States shall obtain the OOH sub-indices for purchases of newly built dwellings and existing dwellings new to households in accordance with paragraphs 2 to 12.

10.Where a Member State uses a stratified median or mean index it shall determine stratification variables on the basis of statistical analysis and ensure that the defined strata are sufficiently homogeneous.

11.Where the available number of transacted dwellings is insufficient to enable the calculation of a reliable price index for a certain stratum, Member States shall estimate the price change for that stratum as the price change for a stratum or a combination of strata characterised by comparable market conditions.

12.Member States shall not carry forward the previous quarter’s prices or impute the same price change as in a previous quarter, unless it can be justified as an appropriate estimate.

2.Member States shall acquire the basic information needed for the definition of the strata or elementary aggregates, or of both, and the compilation of the sub-indices referred to in paragraph 1.

3.Member States shall ensure that data collection covers relevant price-determining characteristics that enable the compilation of a price index that is unaffected by quality differences between transacted dwellings.

4.Member States shall ensure that the data used as a source of information on transacted dwellings is representative of the target universe of each sub-index in each reference period.

5.Member States may exclude from the sub-indices referred to in paragraph 1, one or more types of dwelling and one or more regions, provided that the total share of excluded dwellings in the household expenditure on purchases of dwellings belonging to the target universe of the OOH price index does not exceed five parts per hundred. Expenditure on purchases of dwellings for excluded types of dwelling or regions shall be allocated to the most similar type of dwelling or region.

6.The sub-indices referred to in paragraph 1 shall be based on transaction prices of dwellings. A transaction price of a dwelling shall be included in those sub-indices for the quarter in which the legal ownership of the dwelling is transferred from the seller to the buyer.

7.Member States shall obtain the sub-indices referred to in paragraph 1 using one of the following options:

(a)as an aggregation of stratum indices calculated either as hedonic indices or indices based on a method that replicates the matched model approach;

(b)as hedonic indices or indices based on a method that replicates the matched model approach;

(c)as a stratified median or mean index.

8.Where a Member State uses a hedonic index, it shall ensure that the applied method controls for quality differences between transacted dwellings in the comparison and reference periods.

9.Where a Member State uses a method that replicates the matched model approach, it shall ensure that matched price comparisons are made for the same dwellings in the comparison and reference periods, in such a way which ensures that quality differences between transacted dwellings are controlled for.

Defined terms · 45

Show every defined term

actual premiums
means the amounts paid for a specific insurance policy to obtain insurance cover over a stated time period;
dwelling
means a self-contained immovable residential unit, either part of a block of flats or built on its own plot of land, which is appropriate for occupation by one household and can provide housing services;
elementary aggregate
means the smallest aggregate used in a Laspeyres-type index;
elementary price index
means an index for an elementary aggregate or an index for a stratum within an elementary aggregate;
estimated price
means a price based on an appropriate estimation procedure;
existing dwelling
means a transacted dwelling that comes from the existing stock of dwellings;
hedonic index
means a price index that uses a hedonic regression as a tool for its compilation.
homogeneous product
means a set of product-offers among which there are no significant quality differences and for which an average price is calculated;
housing cooperative
means a legal entity that grants each of their shareholders the right to occupy a certain dwelling in the cooperative;
implicit service charge
means the output of insurance companies, as defined in paragraph 16.51 of Annex A to Regulation (EU) No 549/2013.
individual product
means a product-offer or a homogeneous product;
inducement
means a change, often temporary, in the characteristics of an individual product by increasing the quantity of the product, attaching another individual product free of charge or offering other benefits to the consumer;
insurance connected with dwellings
means a non-life insurance, taken out by a dwelling owner, against fire, storm, flood, theft and vandalism typically covering the building structure and immovable parts such as fitted kitchens, fitted wardrobes;
major renovations
means improvements that increase a dwelling’s underlying standard of providing accommodation services, or substantially lengthen its previously expected service life and therefore increase its value, and go beyond activities required to keep the dwelling functioning and usable;
major repairs and maintenance
(O.1.2.1) includes households’ expenditure on intermediate consumption, as defined in paragraph 3.88 of Annex A to Regulation (EU) No 549/2013, as regards all materials and services for major repairs and maintenance.
market price
means the amount of money that a willing buyer pays to acquire a good, service or asset from a willing seller where the exchanges are made between independent parties based on commercial considerations only;
method that replicates the matched model approach
means a method to compile a price index that compares transaction prices from repeated sales of the same dwellings or compares actual transaction prices with appraisals to compute price relatives for the same dwellings;
new dwelling
means a dwelling that, when ready to be used, is considered to provide a new housing service and is seen as an addition to the existing stock of dwellings;
newly built dwelling
means a transacted dwelling that is newly constructed or is created by converting an existing non-residential building or a non-residential part of an existing residential building;
observed price
means the price of an individual product, used by the Member State for the compilation of certain sub-indices of the OOH price index;
Other services related to ownership of dwellings
(O.1.2.3) includes households’ expenditure on intermediate consumption as regards any services provided to owners of dwellings not included in any of the categories referred to in points (d) and (e) and purchased by households in connection with owner-occupied dwellings.
other services related to the acquisition of dwellings
(O.1.1.3) includes households’ expenditure on costs of ownership transfer that are included in gross fixed capital formation in accordance with the second subparagraph of point 3.133 of Annex A to Regulation (EU) No 549/2013, and are related to:
owner-occupiers
means households that live in a dwelling that they own;
prefabricated house
means a house that is manufactured off-site and is ready to assemble;
producer price index for construction
means an index that shows the development of prices paid by the client to the construction company, as defined in Annex IV to Commission Implementing Regulation (EU) 2020/1197;
product-offer
means a product specified by its characteristics, the timing and place of purchase and the terms of supply, and for which a price is observed;
provisional data
means price indices and weights that a Member State is expected to finalise in a subsequent quarter;
quality difference
means a difference between the characteristics, timing, place of purchase or terms of supply of two individual products, where this is relevant from the consumer’s perspective;
quality difference between transacted dwellings
means a difference between the type, physical characteristics, age or location of transacted dwellings in two periods, where it is relevant from the purchaser’s perspective;
replacement product
means an individual product that replaces another individual product in the target sample for the OOH price index;
revision
means a change in price indices or weights published by the Commission (Eurostat);
self-build dwelling
means a dwelling built by a household for its own occupation, either through its own labour or by employing a professional builder or by buying a prefabricated house and where land is acquired separately from the building;
self-build dwellings and major renovations
(O.1.1.1.2) includes households’ expenditure on gross fixed capital formation, as defined in paragraph 3.124 of Annex A to Regulation (EU) No 549/2013, of all goods and services purchased as inputs for:
stratified median or mean index
means a price index that is constructed on the basis of a measure of central tendency, which is calculated for each stratum of transacted dwellings belonging to the target universe of the HPI among which there are no significant quality differences;
stratum
means a subgroup of elements belonging to the target universe of HPI or OOH price index within an elementary aggregate, for which a price index adjusted for any quality differences is calculated and to which a weight is assigned;
sub-index
means the price index for any of the expenditure categories set out in Articles 3 and 11 of this Regulation;
target sample for the OOH price index
means a set of transacted dwellings and individual products that pertain to transactions from the target universe of the OOH price index and for which price data are to be used for OOH price index compilation;
target universe of the HPI
means all transacted dwellings purchased at market prices, regardless of which institutional sector they were bought from and of the purchase purpose, and where:
target universe of the OOH price index
means all transactions included in owner-occupiers’ housing expenditure, as defined in the Annex;
time reversibility
means the property whereby the index between two periods (a) and (b) is equal to the inverse of that same index between two periods (b) and (a);
transacted dwelling
means a dwelling the legal ownership of which was transferred as a result of a sales transaction including the purchase of shares in a housing cooperative that gives the right to occupy a dwelling in the cooperative;
transaction price
means the total price paid by a household for the acquisition of a dwelling, including value added type taxes and excluding subsidies influencing the final prices of dwellings, and covering the price of both the structure and the underlying land where relevant;
transitivity
means the property whereby an index that compares periods (a) and (b) indirectly through period (c) is identical to one that compares periods (a) and (b) directly;
type of dwelling
means a category of dwellings having common characteristics.
value added type tax
means a tax on goods or services collected in stages by enterprises and which is ultimately charged in full to the final purchaser, as defined in paragraph 4.17 of Chapter 4 of Annex A to Regulation (EU) No 549/2013 of the European Parliament and of the Council;