Hope Arises as European and American Homeowners Expect the Value of Their Property...

Hope Arises as European and American Homeowners Expect the Value of Their Property to Increase

FT/Harris Poll Shows Housing Crisis Not Limited to the United
States
ROCHESTER, N.Y.--(Business Wire)--
The impact of the housing crisis is definitely not confined to
just one country, and all across the world there are mixed feelings on
the role of government in addressing this issue. However, amid the
gloom, there is a sense of hope:

-- Majorities of adults who own their primary residence in
Germany (65%), France (60%), Italy (55%), the U.S. (54%) and
Spain (51%) all expect the price of their residence to remain
the same one year from now. Homeowners in Great Britain are
split - 43 percent expect it to remain the same while 42
percent expect it to decrease;

-- Two-thirds of American homeowners (68%) as well as majorities
of home owners in Italy (64%), Spain (57%), and Great Britain
(56%) and 45 percent of homeowners in France all expect the
value of their home to increase five years from now. Germans
are a bit more pessimistic as almost half of homeowners there
(48%) say they expect it to remain the same;

Additional results of a Financial Times/Harris Poll conducted
online by Harris Interactive(R) among a total of 6,220 adults (aged
16-64) within France, Germany, Great Britain, Spain and the United
States and adults (aged 18-64) in Italy between July 2 and 14, 2008
found that:

-- Majorities of those who rent their primary residence in France
(61%), Great Britain (56%) and Spain (54%) say they expect the
amount they pay to increase one year from now. Majorities of
renters in Germany (70%), the U.S. (62%) and Italy (52%)
expect their rent payments to remain the same one year from
now;

-- Majorities in France (67%), Germany (62%), the U.S. (61%),
Great Britain (55%) and Italy (55%) all say they are not at
all concerned they might lose their residence because they are
not able to make their mortgage or rent payments. Adults in
Spain are a bit more concerned as 39 percent say they are not
at all concerned while 33 percent say they are somewhat
concerned; and,

-- Majorities in Italy (72%), Spain (59%) and France (58%) say
the government should have a lot of involvement to support the
property market through initiatives such as cutting property
related taxes or subsidizing mortgage rates. Majorities in the
U.S. (58%), Great Britain (51%) and just under half of adults
in Germany (49%) say the government should have some
involvement.

There are also different ways to look at property - either as
primarily a residence or an investment property.

-- Strong majorities in the six countries (from 73% in Italy to
90% in Great Britain) say they regard property primarily as a
place to live;

-- Majorities in Great Britain (76%), Spain (69%), Germany (67%),
the U.S. (64%), and France (55%) as well as just under half of
adults in Italy (49%) say they are not at all likely to
consider buying investment property either in their own
country or abroad;

-- Among those who are considering the purchase of investment
property and are not currently retired, there are mixed
feelings on whether that investment would be part of their
retirement plans. A majority of these adults in France (55%),
just under half of adults in Great Britain (49%) and Italy
(48%) and a plurality of adults in the U.S. (44%) say it is no
part of their plan for retirement. Majorities of adults in
Germany (56%) and Spain (55%) say it is part of their
retirement plan.

So What?

The housing and economic crisis is not relegated to just one
country and it is slightly comforting that such high numbers are not
at all concerned that they might lose their residence. However, one in
ten owners and renters in Spain (10%) and Italy (9%) are extremely
concerned and between 12 percent (France) and 27 percent (Spain) of
adults in all 6 countries are at least fairly concerned they might
lose their home. And, people are expecting their government to do
something - but will it be enough and in time?

Methodology

This FT/Harris Poll was conducted online by Harris Interactive
among a total of 6,220 adults (aged 16-64) within France (1,073),
Germany (992), Great Britain (1,075), Spain (1,014), and the United
States (1,053), and adults (aged 18-64) in Italy (1,013) between 2 and
14 July 2008. Figures for age, sex, education, region and Internet
usage were weighted where necessary to bring them into line with their
actual proportions in the population. Propensity score weighting was
used to adjust for respondents' propensity to be online. Because the
sample is based on those who agreed to participate in the Harris
Interactive panel, no estimates of theoretical sampling error can be
calculated. A full methodology and data tables are available at
www.harrisinteractive.com.

These statements conform to the principles of disclosure of the
National Council on Public Polls and of the British Polling Council.

J6867

Q1300, 1305, 1310, 1315

About Harris Interactive

Harris Interactive is a global leader in custom market research.
With a long and rich history in multimodal research, powered by our
science and technology, we assist clients in achieving business
results. Harris Interactive serves clients globally through our North
American, European and Asian offices and a network of independent
market research firms.

Harris Interactive Inc. 7/08

Harris Interactive
Tracey McNerney, 585-214-7756
press@harrisinteractive.net

Copyright Business Wire 2008