The Lidovci will demand an increase in the allocated amount for the construction of affordable housing

housing

Prague - The Christian Democrats will demand an increase in the allocated amount for the construction of affordable rental apartments during negotiations in the coalition Together (ODS, KDU-ČSL, and TOP 09). After the meeting of the national committee of the KDU-ČSL, representatives of the party stated this at a press conference. Eight billion crowns should be allocated annually for construction subsidies, and 16 billion crowns in the form of preferential loans. Thus, 10,000 new rental apartments could be created each year. Currently, the Affordable Housing program has seven billion crowns allocated until 2026.

The chairman of the KDU-ČSL and Minister of Agriculture Marek Výborný said that the issue of housing affordability is one of the topics that voters are demanding from the party. "We are aware that our former coalition partner (Pirates) has not come close to fulfilling the mandate set out in our government program statement. At the same time, we are very sensitively aware that the issue of affordable housing concerns everyone," said Výborný.

In addition to increasing the allocated amount for the construction of affordable housing, the party will also address issues related to short-term rentals, which, according to Vice-Chairman and MP Jiří Horák, disadvantage many people. He also wants to prohibit the purchase of real estate by third parties outside the European Union who are not residents in the Czech Republic. According to him, apartments should not become an investment matter. The Christian Democrats will also seek to simplify conditions for construction on brownfields.

"This will be our contribution to the negotiations of the coalition Together. We expect that other financial institutions such as pension funds, insurance companies, and banks will also get involved in solving affordable housing. However, ensuring affordable housing requires a robust system, and that is why we are bringing these proposals," added Výborný.

Support for affordable housing from the State Fund for Investment Support (SFPI) is intended for the construction of rental apartments. It can be used for new builds, construction modifications, or extensions. A portion of the money can be immediately used for up to 40 percent of the costs if specific requirements are met. The subsequent subsidized loan, which can amount to 65 percent of the project cost, is based on the EU basic rate for the Czech Republic, reduced by up to three percentage points. In total, subsidies and favorable loans could cover up to 90 percent of the investment. The repayment period is up to 30 years, and early repayment is without fees. Legal entities and regional self-governing units may apply for support.

About seven months before the parliamentary elections, other parties are also focusing on the issue of housing. For example, Prime Minister and ODS leader Petr Fiala previously stated that housing is one of the pressing problems troubling Czech citizens. At a government press conference at the beginning of February, he presented the current results of the Affordable Housing program, which is overseen by the Ministry of Regional Development led by Petr Kulhánek (for STAN).

Housing prices in the Czech Republic have been rising for a long time. Rental prices are also increasing. In the last quarter of last year, apartment prices rose by 5.8 percent quarter-on-quarter. On average, one square meter cost 110,100 crowns, six thousand crowns more than in the third quarter. Rent increased in the fourth quarter of last year by an average of seven percent year-on-year to 16,473 CZK per month.

The availability and quality of housing in the Czech Republic was the fifth worst among EU countries last year. The Czech Republic ranked 23rd among the 27 European countries and fell one place compared to 2023. The reasons are primarily rising housing costs and insufficient construction. This was indicated by last year's Prosperity and Financial Health Index prepared by Česká spořitelna and the portal Europe in Data.