Housing-induced Poverty and Rent Deregulation: A Case Study of the Czech Republic
Housing-induced Poverty and Rent Deregulation: A Case Study of the Czech Republic

Summary/Abstract: This paper deals with the issue of the relationship between households’ housing costs and poverty. Using the concept of housing affordability it studies so-called housing-induced poverty in the Czech Republic. It combines this concept with the concept of relative poverty defined by Eurostat. The results show that households living in apartments with rent are the most vulnerable to poverty. The next part of the paper deals with the impact of the prospective end of regulated tenancies in the Czech Republic. It focuses on the changing level of the rents, and their influence on the number of households which are at risk of poverty. Micro-simulation models based on the EU-SILC micro data for the Czech Republic were employed in the research. Based on the results of these micro-simulation models it is assumed that the number of households at risk of poverty will increase sig-nificantly owing to the deregulation process. The paper highlights the develop-ment of the number of households at risk of poverty between the years 2008 to 2010, and discusses individual factors influencing the number of households at risk of poverty presently, as well as factors that will influence it after 2010.

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