Credit subsidies. It didn’t work out this week, there’s a new deadline

There is a chance that we will finally find out what is in the draft housing laws prepared by the Ministry of Development and Technology. A few days ago, Minister Krzysztof Paszyk informed that they would be discussed at the Economic Committee of the Council of Ministers last Wednesday, but that did not happen. The Minister of Finance assured that the draft will be discussed next week.

Loan subsidies are finally set to be put on the table for the first time

The projects cover four issues:

• cheap apartments for rent,

• support for families with average incomes in the form of housing loans,

• removing investment barriers,

• release of land for development.

As for the first, all coalition partners seem to agree: there should be some form of social housing. The idea of ​​subsidies is causing the most excitement and it can be expected that the meeting will not be calm. It will be attended by ministers who have a different opinion on the sense of introducing subsidies similar to last year’s “Safe Credit 2%”. Minister of Funds Katarzyna Pełczyńska-Nałęcz has so far criticized subsidies in the media, and on Wednesday she will be able to confront Minister Paszyk.

Andrzej Domański also said that the (KERM) meeting is discussing how to divide the funds earmarked for supporting the housing sector in 2025. He expressed hope that the decision on how to support housing will be made in the coming weeks.

– Due to very high interest rates, many potential borrowers are absolutely cut off from the possibility of taking out a mortgage. On the other hand, we must remember that the supply of apartments needs to be increased – Domański told TVP Info.

On Wednesday, the Monetary Policy Council decided to keep interest rates at their current level – they were last lowered in October 2023, after a series of increases.

“Start-up loan” also for singles

Krzysztof Paszyk assured that the expenses for the 0% loan have already been initially planned.

– The first year of the credit program is about PLN 500 million. In subsequent years, this will of course increase, but it is not an amount that dominates the budget for housing – informed the minister.

What else do we know about the Minister’s plans regarding subsidies?

Singles will be able to use the program, and with a subsidy it will also be possible to buy an apartment on the secondary market. Asked about the age limit of people who will be able to use the subsidy for the loan, the minister said that “we are talking about an age limit of 35, but these are details that can still be shaped at this stage of work.”

“Start-up credit” won’t raise prices? Minister talks about “safety devices”

He also assures that the program will not repeat the mistakes of its predecessor, because it will have built-in “safeties” that will prevent housing prices from rising due to the supply of money from loans.

– We have quarterly limits on granting aid, which means we are counteracting the kind of demand peak that previously caused an increase in housing prices – said the minister. – There will definitely not be entire annual tranches, it will be limited, for example, to quarterly limits on applications that will be considered, so then we will stabilize and spread the amount of money that will reach the market over time to prevent a demand peak – he noted.

Even if there is money, where to build?

Let’s assume that money for subsidies will be found, and the program will be planned in such a way that it will not increase property prices to the same extent as its predecessor, “Safe 2% Credit”. However, this does not solve the basic problem: developers in cities have nowhere to build. Small blocks, sometimes a few – there will still be room for that. Larger estates with infrastructure – there is practically no chance for that.

Wednesday’s “Puls Biznesu” recalled that in 2023, land prices rose by over 20 percent, and data from the National Bank of Poland show that in 2023 as many as 57 percent of investors had difficulties in acquiring land for development, while a year earlier it was 34 percent. At the same time, “PB” stated that “the Civic Coalition promised to release land in the campaign preceding last year’s parliamentary elections – especially from the resources of state treasury companies and the National Property Resource.”

“However, there is no sign of keeping the promises – KZN is doing great, and the Ministry of Funds supervising it does not intend to liquidate it. At the end of 2023, the institution established seven years ago owned 181 state treasury properties with a total area of ​​800 ha” – we read in “PB”. We write more here.