Hungarian government rejects claims that new home-buying scheme will send property prices soaring
The spokesman for the National Economy Ministry dismissed speculation that a subsidised credit scheme for first-time home buyers would inflate prices in a video message on social media on Monday.
André Palóc said price thresholds built into the Home Start Programme would prevent price inflation, brushing off “attacks by left-wing liberals”. He added that housing supply would expand as home construction picked up.
He noted that the government had earmarked HUF 300bn in support for new home builds and said the 3pc credit scheme was part of a complex package of measures for the home market.
Homes eligible for the Home Start credit may be priced at no more than HUF 100m for a unit in a multidwelling building and HUF 150m for a detached home. Relative to area, prices are capped at HUF 1.5m/sqm.
Palóc said repayments of the Home Start loans, up to HUF 50m, would be less than rents.
Featured image: depositphotos.com
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