Commission Implementing Regulation (EU) 2023/1470, CHAPTER 1 — GENERAL PROVISIONS (Article 1–Article 2) — Full Text

Subject matter

Article 1

This Regulation establishes uniform conditions for producing the following indexes: (a) the house price index (HPI); (b) the owner-occupied housing (OOH) price index.

Definitions

For the purposes of this Regulation, the following definitions apply: (1) ‘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; (2) ‘housing cooperative’ means a legal entity that grants each of their shareholders the right to occupy a certain dwelling in the cooperative; (3) ‘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; (4) ‘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; (5) ‘existing dwelling’ means a transacted dwelling that comes from the existing stock of dwellings; (6) ‘sub-index’ means the price index for any of the expenditure categories set out in Articles 3 and 11 of this Regulation; (7) ‘elementary aggregate’ means the smallest aggregate used in a Laspeyres-type index; (8) ‘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; (9) ‘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: (a) the purchasing party is a household as defined in Article 2(18) of Regulation (EU) 2016/792; (b) the subject of the transaction is any type of newly built or existing dwelling; (c) the dwelling is located on the economic territory of a Member State as defined in Article 2(19) of Regulation (EU) 2016/792; (d) the transaction is a monetary transaction; (10) ‘HPI expenditure share’ means a percentage of total household expenditure on purchases of dwellings belonging to the target universe of the HPI; (11) ‘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; (12) ‘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; (13) ‘type of dwelling’ means a category of dwellings having common characteristics. Two main types of dwelling are flats and houses. Depending on country circumstances, further types may be distinguished, such as detached houses, semi-detached houses and terraced houses; (14) ‘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; (15) ‘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 ( 5 ) ; (16) ‘hedonic index’ means a price index that uses a hedonic regression as a tool for its compilation. A hedonic regression refers to the statistical analysis of a functional form used to estimate the impact of price-determining characteristics on the price of a dwelling; (17) ‘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; (18) ‘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; (19) ‘owner-occupiers’ means households that live in a dwelling that they own; (20) ‘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; (21) ‘prefabricated house’ means a house that is manufactured off-site and is ready to assemble; (22) ‘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; (23) ‘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; (24) ‘major repairs and maintenance’ means works typically undertaken by the dwelling owner in order to bring the dwelling back to its original state or the state after the last major renovation which helps to extend its life but not to increase its value compared with its original state or its state after the last major renovation; (25) ‘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; (26) ‘target universe of the OOH price index’ means all transactions included in owner-occupiers’ housing expenditure, as defined in the Annex; (27) ‘OOH expenditure share’ means a percentage of total household expenditure on transactions belonging to the target universe of the OOH price index; (28) ‘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 ( 6 ) ; (29) ‘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; (30) ‘homogeneous product’ means a set of product-offers among which there are no significant quality differences and for which an average price is calculated; (31) ‘individual product’ means a product-offer or a homogeneous product; (32) ‘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; (33) ‘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; (34) ‘replacement product’ means an individual product that replaces another individual product in the target sample for the OOH price index; (35) ‘estimated price’ means a price based on an appropriate estimation procedure; (36) ‘actual premiums’ means the amounts paid for a specific insurance policy to obtain insurance cover over a stated time period; (37) ‘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; (38) ‘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; (39) ‘elementary price index’ means an index for an elementary aggregate or an index for a stratum within an elementary aggregate; (40) ‘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; (41) ‘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); (42) ‘revision’ means a change in price indices or weights published by the Commission (Eurostat); (43) ‘provisional data’ means price indices and weights that a Member State is expected to finalise in a subsequent quarter; (44) ‘implicit service charge’ means the output of insurance companies, as defined in paragraph 16.51 of Annex A to Regulation (EU) No 549/2013.

Commission Implementing Regulation (EU) 2023/1470 CHAPTER 1 — GENERAL PROVISIONS

Article 1

Article 2

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