Cheap loans for families
This is what the federal government is planning at the housing summit
September 25, 2023, 9:09 a.m
High interest rates, expensive building materials and energy standards: the construction industry is weakening. The goal of 400,000 new apartments per year has long been utopian. Now there is a housing summit in the Chancellery. A number of measures for more apartments are listed in a resolution paper available to ntv.
A construction and housing summit will take place in the Federal Chancellery this Monday. In addition to Federal Chancellor Olaf Scholz and Federal Construction Minister Klara Geywitz from the SPD, over 30 associations and clubs from the sectors involved are expected. In a six-page paper on the summit, which is available to ntv, 14 measures are listed, some of which are already known or are declarations of intent. The government paints a difficult picture of the industry, which is under pressure due to the rapid rise in interest rates and significantly increased construction costs. At the same time, several measures are being adopted to stimulate housing construction.
More families than before should receive low-interest building loans in order to make their dream of owning their own four walls come true. The state-funded maximum loan amounts would be increased by 30,000 euros, according to a decision paper from the federal government for the housing summit in the Chancellery. “In addition, the limit of taxable income up to which a low-interest loan can be applied for will be raised from 60,000 euros per year to 90,000 euros per year.”
“Capacity utilization in construction is currently still over 70 percent, but it will not continue at this level. Therefore, further efforts are now required to stabilize the construction and housing industry,” said the government. “Insolvencies and job cuts must be avoided as much as possible.” At the same time, bureaucracy must be reduced, planning and approval processes accelerated and digitalization accelerated.
In the paper, the traffic light says goodbye to its plan to introduce a renovation obligation at EU level. Although the government wants to advocate for ambitious renovation quotas for the entire building stock, it wants to exclude mandatory renovations of individual residential buildings. In cities and municipalities with tight housing markets, the construction of affordable housing should be simplified.
For this purpose, a special regulation should be created in the building code until the end of 2026. In addition, a home ownership program “Young Buys Old” will be launched for the acquisition of existing buildings in need of renovation. The funds for this should come from the Climate and Transformation Fund (KTF). However, a volume was not mentioned.