Work abroad, buy at home: Hungary’s new housing scheme opens doors to commuters

Housing scheme work abroad buy at home Budapest
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A government decree on the Home Start subsidised credit scheme for first-time home buyers will be published in the coming week, at the latest, Gergely Gulyás, the head of the Prime Minister’s Office, said at a weekly press briefing on Thursday.

Details of the government’s Home Start Programme will be posted on a dedicated home page, accessible through the government website kormany.hu, from the weekend, Gulyás said.

He said the government had decided, after social consultations, to extend eligibility for the Home Start Programme to Hungarians who live in Hungary but commute to work in neighbouring countries. The government also took a decision to cap bank fees for the credit at HUF 30,000, he added.

The scheme, to launch from September 1, will offer fixed 3pc home loans to Hungarians over 18 who have worked for two years and paid their social security contributions. Social security contributions paid in neighbouring countries for cross-border commuters will meet the requirement.

The loans, up to HUF 50m, may be used for new or resale homes, and small farms. Eligibility extends to borrowers who have not owned residential property for the previous ten years, owners of real estate with a value under 15 million forints and people whose ownership stake in a home does not exceed 50 percent, he noted.

The value of homes eligible for purchase in the scheme has been set at 100 million forints for homes in multi-dwelling units and 150 million for detached homes, Gulyás said. Relative to usable area, the price threshold is 1.5 million forints/sqm.

Meanwhile, Gulyás said a home allowance scheme announced by the prime minister late Wednesday was a show of appreciation for civil servants. He noted that teachers, police, soldiers, nurses, doctors and other civil servants would be eligible for the 1 million forint annual allowance to be taxed similar to vouchers.

He added that the allowance could be used to repay home loans or put toward down payments. The allowance may also be combined with the Home Start Programme for first-time home buyers, he said. The details of the home allowance will be decided at a cabinet meeting in the coming week, he added.

The allowance will be subject to the same tax preferences as non-wage benefits, he said. Gulyás also announced that the government will expand funding for a village shops support programme to match demand.

He said applications for more than 10 billion forints of support had been received, well over the 4 billion forints initially earmarked for the scheme. The government has decided to ensure the funding necessary for awards for all eligible applications, he added. A total of 3,527 applications have been submitted by 2,392 applicants in 1,966 settlements with populations under 5,000, he said. Applicants may apply for up to 3 million forints in grant money.

Gulyás: EU-US tariff deal against European interests

The tariff deal between the European Union and the United States is against European interests and harmful to Europe and Hungary, Gulyás said.

Had Hungary been allowed to negotiate under its own authority, Prime Minister Viktor Orban would have concluded a better deal with US President Donald Trump than the European Commission had, he said.

The fact that the EU agreed to an exemption from tariffs for the US while accepting a 15 percent tariff on EU exports to the US “is only part of the EU’s humiliation”, Gulyás said. The EC also committed to buying “a significant amount of energy and other products from the US,” he said.

He said the latter part of the agreement was “legally questionable”, arguing that while tariff policy is an EU competency and so agreements fall within the EC’s purview, policies of investment and energy are in the hands of member states, “and the EC has neither the right nor the tools to enforce the fulfilment of commitments.”

The agreement on tariffs also pertains to Hungary, but “other parts constitute no obligation” for the country, he said.

Gulyás: Home allowance sign of appreciation for civil servants

A home allowance programme announced by the prime minister late Wednesday is a show of appreciation for civil servants, Gulyás said.

Gulyás noted that teachers, police, soldiers, nurses, doctors and other civil servants would be eligible for the HUF 1m annual allowance to be taxed similar to vouchers.

He added that the allowance could be used to repay home loans or put toward down payments. The allowance may also be combined with the Home Start Programme for first-time home buyers, he said. The details of the home allowance will be decided at a cabinet meeting in the coming week, he added.

Gulyás: Govt to expand support for village shops

The government will expand funding for a village shops support programme to match demand, Gulyás said.

Guylas said applications for more than HUF 10bn of support had been received, well over the HUF 4bn initially earmarked for the scheme. The government has decided to ensure the funding necessary for awards for all eligible applications, he added.

A total of 3,527 applications have been submitted by 2,392 applicants in 1,966 settlements with populations under 5,000, he said. Applicants may apply for up to HUF 3m in grant money.

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