Hungarian government launching home renovation subsidy

The government is launching a scheme for subsidising home renovations carried out by households with at least one child, Katalin Novák, the minister for family affairs, told a press conference on Wednesday.

Under the scheme launching on Jan. 1, half of the renovation costs up to a maximum of 3 million forints (EUR 8,400) per renovation will be covered by the state.

Applicants are not required to have already participated in the “Csok” housing subsidy scheme launched by the government in 2015.

The support covers energy upgrades, bathroom and kitchen renovations, and extensions.

Novak gave the example that every family with a child could, say, spend six million forints on renovations and save three million forints.

The amount of funding under the scheme will be tailored to demand rather than capped.

Full details of the programme will be unveiled in detail over the next few weeks, she added.

She noted that the VAT rate on sales of new-builds is being reduced from 27 percent to 5 percent from Jan. 1. Households that qualify for the government’s Csok scheme can also reclaim the 5 percent VAT when purchasing a new home, she added.

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Source: MTI