How to build more homes: MEASZ’s strategy
Hungarian building material suppliers association MEASZ proposes a number of incentives to boost the construction of new homes in the country, Hungarian news agency MTI reported today.
The association urges the establishment of cheap mortgages at a 2.5% rate, MEASZ chair Győző Vidor said. Another suggestion is that residents building a new home get a susbtantial VAT discount and pay 7 % as opposed to the 27% current rate. They should also be granted a HUF 30,000 subsidy per square metre if their home has an A+ energy efficiency rating, Vidor added.
Construction of new homes has fallen by about 80% in the past years. In Hungary 1.25 new home is built per 1,000 residents, compared to 4.56 in Austria and 2.72 in the Czech republic.
Of the 4.5 million homes now available in Hungary, half a million stand empty because they are of poor quality or in undesirable locations.
If the proposals are adopted, the number of new homes could climb to 10,370 next year from an expected 8,500 this year. The increase would raise budget revenue from HUF 80bln to HUF 95bln, MTI reports.
By 2020, some 40,000 new homes could be built each year, creating 120,000 jobs in the construction materials sector and generating HUF 270bln in extra fiscal revenue, including HUF 53bln in VAT and HUF 161lbn in payroll tax.
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