Expert warns 'Mieszkanie na Start' programme may not benefit those in need
"Mieszkanie Na Start" is another government loan program aimed at stabilising the real estate market. However, economist Dr Jakub Sawulski has criticised the proposal.
Many young people are struggling to afford housing these days. Rental prices are also exceptionally high. So, how does one manage to live in such a situation? The common advice is to limit spending on luxuries and save up by working extra shifts and cutting back on expenses. This advice is not just given by older generations but also by entrepreneurs and real estate investors. However, the problem is that even if someone can afford a loan, they cannot compete with someone who can make a quick cash purchase (the so-called "flippers").
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‘Mieszkanie na Start’: Who is it for?
The Ministry of Development and Technology, led by Krzysztof Hetman, set up the 'Mieszkanie na Start' programme to help address the housing problem. It seeks to provide the most significant assistance to families with many children. The loan subsidy rates are as follows:
- 1.5% for one-person and two-person households,
- 1% for three-person households,
- 0.5% for four-person households,
- 0% for five-person households and above.
However, there are age and financial restrictions. Single individuals can only apply for the subsidy up to age 35. In terms of income, the maximum amounts are PLN 10,000 gross for a one-person household and PLN 18,000 gross for a two-person household.
The government allocated PLN 500 million for the programme.
Does 'Mieszkanie na Start' make sense? The expert is sceptical
In an interview for TOK FM, Dr Jakub Sawulski explained why the government's housing programme is not the best solution in the current situation. According to the economist, the state is repeating the same approach and expecting different results. The programme supports demand in the housing market, but this will not contribute to greater housing availability because the problem is not the demand but the housing supply.
Dr Sawulski suggested that the supply of housing should be increased through top-down regulations, such as making plots of land available for construction. He further pointed out that the construction of housing by the state would be more beneficial, a postulate proposed by the Left that is widely criticised for unknown reasons.
The economist has a pessimistic view of the future.
"The lack of housing availability has already lowered the quality of life for an entire generation. Currently, it is difficult to determine what steps the government should take to improve the situation," Dr Jakub Sawulski said in an interview with TOK FM,
Source: TOK FM
