forgiving the debt - an amárach/frontline report june 2011
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1Forgiving the Debt
Forgiving
the Debt
27thJune 2011
© Amárach Research
Forgiving the Debt
A record number of home owners in Ireland are experiencing difficulties with their mortgage repayments, as well as suffering from negative equity in their homes.
There have been calls for measures to reduce the debt burden of those experiencing such difficulties: either through more flexible mortgage arrangements or outright debt forgiveness.
RTE Frontline & Amárach Research have conducted a nationwide survey of 1,000 Irish people in June 2011 to gauge their views on what should be done.
3Forgiving the Debt
A Nation of Owners
57% 55%43% 45%
Do you own your own home?
Owners Only: do you have a
mortgage?
Home Ownership
Yes No
Most people (57%) own their own homes in Ireland: rising to 84% of those aged 55 and over.
Among home owners, a majority do have mortgages: rising to 89% of 35-44 year olds, falling to just 27% of those over 55.
Source: Amárach Research, June 2011
4Forgiving the Debt
Forgiveness
78% 78% 78% 82%74%
Total Home Owner
Non Owner
Mortgage No Mortgage
Debt Forgivers% Yes The vast majority of Irish
people support the idea of some mortgage debt forgiveness for those in difficulty – over three quarters of all adults.
Those home owners who do not have mortgages are slightly less supportive.
Women are slightly more supportive than men (82% vs 74%), and young people more than older people.
Source: Amárach Research, June 2011
Q. Would you support a reduction in the mortgage debt of people who
are having difficulty meeting their monthly mortgage repayment?
5Forgiving the Debt
Negatively Positive
69% 69% 70% 72%66%
Total Home Owner
Non Owner
Mortgage No Mortgage
Pro-Negative% Yes
Again the majority of Irish people support the idea of some mortgage debt forgiveness for those in negative equity – albeit a lower percentage than for those experiencing repayment difficulties.
Those home owners who do not have mortgages are again slightly less supportive of the idea – but most are.
Women are also slightly more supportive than men (73% vs66%), and young people slightly more than older people.
Source: Amárach Research, June 2011
Q. Would you support a reduction in the mortgage debt for people who
are in negative equity on their personal dwelling home?
6Forgiving the Debt
Buy to Sweat
33% 30%37%
30% 30%
Total Home Owner
Non Owner
Mortgage No Mortgage
Help for Landlords% Yes
When it comes to those who bought buy-to-let properties there is considerably less support: only one in three people think they should be entitled to some reduction in their mortgage.
There is little gender difference in opinions, but a more marked age difference: with nearly half of 15-24s feeling there should be some reduction, compared to less than a quarter of 35-44s.
Source: Amárach Research, June 2011
Q. Would you support a reduction in mortgage debt for people who bought
properties to rent but who cannot meet the repayments currently?
7Forgiving the Debt
Who Pays? Option 1
27%
24%
18%
21%
19%
16%
29%
22%
Over 55s
45-54s
35-44s
25-34s
15-24s
Female
Male
Total
Taxing Matter% Yes
Not surprisingly, whilst most people are in favour of some form of debt forgiveness for those experiencing mortgage difficulties, there is little support for higher taxes to fund debt forgiveness.
However those home owners who do not have mortgages are somewhat more supportive of higher taxes: 28% of them vs an average of just 22%.
Source: Amárach Research, June 2011
Q. Would you support the restructuring of debt through higher taxes?
Base: all who support a reduction in mortgage debt
8Forgiving the Debt
Who Pays? Option 2
24%
20%
33%
34%
32%
25%
33%
29%
Over 55s
45-54s
35-44s
25-34s
15-24s
Female
Male
Total
Mortgage Levy% Yes
Though there is somewhat more support for this solution (than for higher taxes) the level is still low.
Even those who don’t have a mortgage do not especially support the idea of a levy, though one in three of those who don’t own their home are supportive of the solution.
Source: Amárach Research, June 2011
Q. Would you support the restructuring of debt through a levy on outstanding
mortgages? Base: all who support a reduction in mortgage debt
9Forgiving the Debt
Who Pays? Option 3
39%
26%
40%
39%
35%
35%
39%
36%
Over 55s
45-54s
35-44s
25-34s
15-24s
Female
Male
Total
Mortgage Levy% Yes
This is a more popular solution of all those considered, with little difference in support by gender or by age.
Perhaps not surprisingly, those who do not own their own home (i.e.: living in public or private rented accommodation) are the most supportive (43%) of a property tax.
Source: Amárach Research, June 2011
Q. Would you support the restructuring of debt through a property tax?
Base: all who support a reduction in mortgage debt
Forgiving the Debt
Clearly the majority of Irish people recognise the financial and emotional burden being carried by those experiencing difficulties with their mortgages.
There is a widespread feeling that those in arrears or negative equity (but not those who bought-to-let) should be given some relief from their debts.
However, there is less support for the different means of funding such measures: neither higher taxes, a mortgage levy nor a property tax had the support of the majority of people.
The desired end is clear: the means less so...
Forgiving the Debt
About Amárach Research
We are an independent market research
agency, providing a full range of research
services to our Irish and international
clients. We have worked with two thirds of
Ireland’s top 200 companies. Every year
we survey over 100,000 people at home
and abroad, as well as running hundreds
of focus groups.
Our experienced team of directors and
executives manage online, face-to-face
and cati surveys; as well as qualitative
research including focus groups, in-depths
and ethnographic studies. We also offer a
unique field-only service to universities and
international agencies.
Amárach Research is proud to be:
Forgiving the Debt
30 permanent staff
+ 180 part time in cati/capi teams
100,000+ interviews last year
& over 400 focus groups
Irish management owned
Guaranteed Irish member
Clients in Ireland
+ UK, USA, Germany
Research Partners
UCD & ESRI
Full Service Research
+ field only
+ consulting
Forgiving the Debt
Call us on 01 410 5200 if you want your business to
bounce forward to success:
Mark Nolan Managing Director
or Michael McLoughlin Chief Executive
or Gerard O’Neill Chairman
for a confidential discussion about your needs and to
explore how we can help you succeed through world
class market research.
e. gerard.oneill@amarach.com
w. www.amarach.com
b. www.amarach.com/blog
t. twitter.com/AmarachResearch
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