New property promotion for families

New property promotion for families

The German government wants to reintroduce home ownership promotion for families. The corresponding KfW program is expected to start from the first of June, said the Federal Minister for Housing, Urban Development and Construction, Klara Geywitz, in an interview with the "Welt am Sonntag".

The plan is to make 350 million euros available for this purpose each year, which will be passed on in the form of low-interest loans. Eligible are families with an annual income of up to 60,000 euros, plus 10,000 euros for each child. Only new buildings are to be promoted for the own residential use, which fulfill at least the standard climaticfriendly building (KFG) basis stage.

The housing construction, in particular the single-family house construction had experienced a special boom with the introduction of the building child money, which collapsed with the expiration of the promotion. Klara Geywitz can recognize however "no direct connection between subsidies and completions". Billion sums in the new building sector, which were paid out over the federal promotion for efficient buildings (BEG), would not have been reflected at all in rising completions.

"The collapse of the housing construction figures in the past year is also the result of a policy, which is directed against the owner-occupied home," says on the other hand the managing director of the Bauherren-Schutzbund, Florian Becker. Many contradictory signals unsettled private owners in the current situation.

In fact, the funding amount of a total of 350 million euros a year for the promotion of ownership is very low in view of the significant increase in construction costs caused by inflation and the drastic increase in construction interest rates.

The governing coalition visibly does not set its focus on the construction of owner-occupied homes on greenfield sites, but would like to give preference to the construction of affordable housing and social housing, because those would be most urgently needed. According to the latest housing study by the Pestel Institute, Germany lacks more than 700,000 apartments.

(Photo: © Angel Garcia, Pixabay)