The Ministry of Development and Technology in Poland has unveiled a new housing development strategy called “Key to Home.” The program is based on three main pillars: support for social and municipal housing, development of the homeownership market, and introduction of social investors. The major changes include increased funding for municipalities, reduced possibilities for supporting home purchases on the secondary market, and new forms of cooperation with social investors.
More funds for social and municipal housing
One of the key premises of the program is increased funding for municipalities for the construction and modernization of social and municipal housing. The Minister of Development and Technology, Krzysztof Paszyk, emphasized the shift in approach to housing:
– “We will allocate the most budgetary funds to these branches of housing that will ensure decent living conditions for people who cannot afford to purchase their own home.”
According to the new rules, municipalities will be able to receive non-refundable subsidies for the construction of new houses or the renovation of vacant properties, possibly covering up to 80% of investment costs. The budget for this purpose will increase from PLN 1 billion in 2024 to at least PLN 2.5 billion in 2025. This is planned to finance the construction or modernization of about 15,000 homes through social housing initiatives (SIM) and social housing construction societies (TBS). In subsequent years, the resources are intended to be even greater.
Supporting homeownership – “First Keys”
Poles are still keen to invest in property ownership, seeing it as a life achievement. The “First Keys” program is aimed at those who do not own their own apartment or house and meet income criteria. To prevent abuse, the program excludes property purchases on the primary market, i.e. from developers and flippers. Support will be available only for apartments and houses that have been in use for at least five years, and their previous owner must have owned the property for a minimum of three years.
The program also foresees limits on the price per square meter: PLN 10,000 in most cities and PLN 11,000 in metropolises like Warsaw, Krakow, Gdansk, Poznan, and Wroclaw. Municipalities will be able to adjust price limits to local conditions. For detached houses, the program also allows for construction support by economic means.
Social investors as a new element of the market
One of the innovative solutions of the program is “First Key Investments.” Social investors, such as TBS, SIM, and housing cooperatives, will be able to sell apartments with a limited profit margin – a maximum of 25%. The offer will be directed only to people without apartments, and the selection of beneficiaries is to take place on transparent principles. At the same time, investors will be obliged to carry out equivalent investments for inexpensive rentals or as part of cooperative tenancy rights to premises.
Investors who decide to sell apartments as part of this program will have the right to manage the common part of the housing community for 10 years. This solution is based on previous experiences of cooperation with TBS, which have already carried out similar projects.
Additional actions supporting seniors and students
The Ministry of Development and Technology also announced the introduction of solutions aimed at supporting the elderly, disabled, and students. Among them are priority in renting municipal apartments adapted to the needs of seniors and the possibility of moving to such premises in exchange for leasing to the municipality the apartment currently occupied.
Support for the construction and modernization of dormitories is planned for students and young people. The size of the grants for these investments can be up to 80% of costs.
Source: https://ceo.com.pl/klucz-do-mieszkania-nowa-strategia-rozwoju-mieszkalnictwa-w-polsce-33657
