The fresh housing credit strategy calls for hot debate among experts and rulers. Minister for Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz beats the alarm – alternatively of improving the availability of housing, planned support can lead to their a sharp increase in prices. Will past last year repeat itself?
"Safe 2 percent credit" and side effects – will the fresh programme follow the same path?
Experts remind us of the situation over the years 2023–2024When it's a government program “Safe 2 % loan” to aid young Poles buy the first apartment. Effect? Real property prices went upand the availability of housing has decreased dramatically.
Why did this happen?
- Demand increased rapidlybecause many buyers decided to usage the surcharge.
- Developers couldn't keep up with building fresh apartments – advanced interest rates and limited capacity made the marketplace incapable to meet the abrupt increase in interest.
- Housing prices increased by up to 20% over the yearwhich made people in an even worse situation without access to inexpensive credit.
The government is presently planning new support programme for borrowersBut now there are fears that past may happen again.
Ministry warns – secondary marketplace subsidies can be a mistake
One of the key elements of the fresh programme is support for purchase of dwellings on the secondary market. According to Minister Pełczyńska-Nałęcz It's a risky solution., due to the fact that alternatively of encouraging the construction of fresh properties, it can lead to an increase in the prices of existing housing.
What does the government say?
Minister Krzysztof Paszyk presented investment plan worth PLN 2.5 billion..to focus on social construction. Measures to go to municipalities could increase the number of apartments per rent and improve the situation of people with lower incomes.
Is that adequate to stabilize the market?
The thought of supporting social construction is simply a step in the right direction, but does not solve the problem of advanced prices for people who want to buy an apartment. Analysts indicate that prevent another price boom, the government should focus primarily on expanding housing supply by:
- Increase in housing investments by simplifying construction procedures.
- Incentives for developers to build apartments for rent alternatively of speculative investments for sale.
- Support for single - household builderswhich could reduce the force on the housing marketplace in large cities.
What's next? Key decisions will be made in the coming months
Consultations on the final form of the housing payment scheme. The government announces that it wants to avoid mistakes from the past, but the social force to introduce fast support is enormous.
Can you find Gold measurement between aid to borrowers and marketplace stabilisation? Experts are divided, but 1 thing is certain – Mistaken decisions may consequence in further price increases and even greater difficulties in purchasing your own M.
Advantages of the fresh programme:
- Aid to persons who have difficulties in obtaining credit.
- Possibility to acquisition an flat on the secondary market.
- Support for social construction.
Possible threats:
- Another emergence in property prices.
- Even harder access to housing for people without government support.
- There is no real increase in housing on the market.
The coming months will show whether the government will learn from the past and make a mechanics that actually will aid Poles get their own place, alternatively of expanding housing prices even more.
Read more:
Can housing subsidies rise prices? Experts inform you of a trap!
