ÉVOSZ calls for the launch of family home creation schemes

Építési Vállalkozók Országos Szakszövetsége (ÉVOSZ) proposes the launch of a home renovation grant scheme to improve the technical condition of housing assets. Magyar Nemzeti Bank proposes to relaunch the Green Home Building Programme, which would be available for renovation, and to offer greater possibilities for employer loans. 

Hungary is also experiencing the "housing crisis" that Europe is experiencing. The Hungarian version of this is the rapid deterioration of the technical condition of housing property, where the owner does not spend enough on renovation and the quality of housing, says Építési Vállalkozók Országos Szakszövetsége (ÉVOSZ) in its communication.

The launch of a programme in spring is seen as an opportunity to complete energy-saving works for this year's heating season.

Housing not being renovated due to lack of resources

László Koji, president of the association, explained that the savings of the population for housing purposes are not sufficient to finance the tasks, loans are needed. However, experience shows that people do not take out loans for housing at high interest rates. He added that the primary constraint on housing in the country is the lack of resources.

The Green Homes Programme would be extended

It is important that the MNB relaunches the Green Home Building Programme and that it can be used for renovation. In addition, ÉVOSZ calls for companies with sound fiscal relations to be allowed to give loans to their employees tax and contribution free as employers.

According to the proposal, an employee would receive a maximum of HUF 10 million in loans or non-refundable subsidies for new housing, and HUF 5 million for renovation.

It was stressed that keeping the momentum of family home-building support schemes, and housing construction more broadly, alive would be helped both in terms of demand and the capacity of builders if the conditions for subsidies and reduced VAT rates were stable and predictable in the longer term. Therefore, the 5 percent VAT scheme for new residential construction is proposed to be applied without any time limit.

They also call for a reduction in black employment

They also point out that the highest levels of undeclared work are found in the construction and renovation of housing for direct public use, mainly due to the high number of workers without written contracts, which undermines competition for honest contractors and poses a high risk for both the client and the contractor. They calculate that in 2023, some HUF 260 billion worth of housing renovation work could have been carried out under oral agreements. The VAT content of this contractor's service is around HUF 70 billion, which will be lost to the state budget, ÉVOSZ pointed out in its statement.