Forgiving The Debt - An Amárach/Frontline Report June 2011

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

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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.


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


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.


Q. Would you support a reduction in the mortgage debt for people who

are in negative equity on their personal dwelling home?

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Buy to Sweat

33% 30%37%

30% 30%

Total Home Owner

Non Owner


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.


Q. Would you support a reduction in mortgage debt for people who bought

properties to rent but who cannot meet the repayments currently?

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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%.


Q. Would you support the restructuring of debt through higher taxes?

Base: all who support a reduction in mortgage debt

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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.


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.


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

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Forgiving the Debt

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Forgiving the Debt

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Forgiving The Debt - An Amárach/Frontline Report June 2011

Economy & Finance

Transcript of Forgiving The Debt - An Amárach/Frontline Report June 2011