Real estate: Families should receive money to build houses


Building and buying a house: who will receive money from the state in the future

Updated: 09/27/2022, 22:00

| Reading time: 5 minutes

Tense situation on the housing market

Tense situation on the housing market

Finding affordable housing is becoming increasingly difficult. Rising inflation, the shortage of skilled workers and the immigrant refugees pose major challenges for those looking for accommodation.

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Federal Building Minister Klara Geywitz presents new property promotion. Low-income families in particular should benefit.

Berlin. It was a double fiasco for the traffic light coalition: the funding framework for the new building collapsed twice this year. For many builders, their calculations became superfluous from one hour to the next, frustration and anger prevailed – among large project developers as well as private home builders. Now the federal government is directing the financial support new out.

From April next year, families in particular should come with them small and middle income be encouraged to purchase property.

Housing: Families with low incomes are to be given more support in the future

This emerges from a confidential report from the house of Federal Building Minister Klara Geywitz (SPD), which is available to our editorial team. In the future, families with at least one child and whose taxable gross annual income is more than 60.000 Euro does not exceed. For each additional child, the funding limit for annual income increases by EUR 10,000.

In the future, these families should low-interest loans received from the state development bank KfW, which is intended to replace part of the equity. “In view of the tight housing market and the price increases for building materials, families with low and middle incomes find it particularly difficult to create affordable housing for themselves,” Geywitz told our editors when asked. Therefore, they would now be deliberately focused on.

New Baukindergeld is off the table

The Federal Building Ministry was aware of low-interest loans and against the introduction of a new one Baukindergeld decided, it says in the key points. The then grand coalition of CDU/CSU and SPD decided in 2018 on the so-called Baukindergeld, which families could use to receive grants. At that time, a family with three children could receive grants of up to 36,000 euros. In March 2021, the funding period for the Baukindergeld expired.

The measure was extremely controversial. Union and SPD had rated the Baukindergeld as a success, as more than 330,000 people between 2018 and 2021 had benefited from the subsidy. The Greens, FDP and Left Party, on the other hand, had regularly complained that prices had risen with the introduction of child support for children – the funding had effectively reached project developers, construction companies and others, but not the families. In May, the Federal Institute for Building, Urban and Spatial Research (BBSR) came to the conclusion in a comprehensive analysis that the child allowance had reached the target group of families.

Stricter requirements for the funding standard

In the Federal Building Ministry, however, different conclusions are drawn. Families with lower and middle incomes would have the acquisition of home ownership hardly benefited from the grants, it is said. Geywitz is also convinced that the low-interest loans support these families “much better” than the child support allowance.

But what about those who earn more than 60,000 euros a year – or also with large property developers? They will also receive funding in the coming year. While a total of around 350 million euros is made available for families with an annual income of up to 60,000 euros, the pot for everyone else is 650 million euros. Only houses that are above the energy efficiency house standard (EH) 55 – the EH55 funding itself will no longer exist. The new standard will be the Energy Efficiency House Standard 40.

Funding for new construction sank into chaos

It is questionable, however, how long the pots will last. By the end of January houses were still being built EH55-Standard promoted. Shortly before the funding expired, the KfW collapsed under a flood of applications. 1.8 billion euros were originally planned, but applications totaling more than 7 billion euros were actually received. The Federal Ministry of Economics pulled the ripcord – and caused chaos among the builders. Finally, Federal Minister of Economics Robert Habeck (Greens) put five billion into the program to process applications received. In April, the traffic light coalition renewed the funding with one billion euros – the money was gone within a few hours.

Now the promotion of renovations and new buildings apart. At the end of July, Habeck presented the new funding conditions for renovations – some with drastically reduced rates. Criticism rained down again. The reform of new building subsidies, on the other hand, is Geywitz’s responsibility.

650 million euros for many target groups

To the 650 million euros many interested parties will now compete: private individuals and families with an annual income of more than 60,000 euros. Private and public landlord groups, such as housing groups or cooperatives. And last but not least, municipalities and companies – because according to the ministry, the subsidy should also apply to non-residential buildings, such as daycare centers, schools, sports halls or office buildings.

The hope in Ministry of Construction: Because the new building standard is stricter than before, the money of a total of one billion euros annually, financed from the climate and transformation fund, should be enough this time. After all: Since the end of April, the new construction of EH40 houses has been funded with around 300 million euros. And at least this pot is not empty yet.

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