The construction industry welcomes the housing package and calls for further steps – 2024-03-22 05:01:01

Yesterday’s decisions on the federal government’s housing package are viewed positively by industry representatives, but faster implementation and additional measures are necessary.

Vienna (OTS) – According to leading representatives of the construction and building materials industry, the fact that part of the federal government’s housing package was approved on Wednesday is an important first step. According to industry representatives, further measures must now be implemented more quickly in order to secure long-term housing needs in Austria. As a joint initiative “More at home’ in Austria!” they are calling for additional political steps to combat the impending housing shortage and job losses in the construction industry, due, among other things, to the massive drop in orders in residential construction.

Demand: Permanent reform of the housing support system

In general, industry representatives are in favor of the federal government presenting a package of measures to promote housing construction in February. According to the initiative, the housing billion in particular provides an important short-term boost. The money is urgently needed because many – including non-profit – housing projects throughout Austria are at a standstill due to delayed housing subsidies.

But even this billion in housing, according to industry representatives, is no substitute for a real reform of the housing support system. In order to enable sufficient housing construction in the long term, the subsidies would have to be permanently increased by 500 million euros annually and the earmarking would have to be reintroduced. However, as of now, this is not part of the federal government’s housing package.

More private housing construction through new lending guidelines

The new options for federal states to take out cheaper housing loans by 2028 are also a step in the right direction, say industry representatives. However, in order to sustainably boost residential construction, the lending guidelines must be permanently relaxed.

In order to support private housing in particular and to give young families in particular access to housing financing, the initiative calls for the KIM regulation to be relaxed. Specifically, the equity ratio must be reduced or supported by government support measures, such as interest-free loans. The possible monthly loan installment for the creation of living space should be increased to 60 percent of the household income or, if income is higher, should be eliminated entirely.

Securing housing needs requires further measures

The abolition of land registry and lien registration fees reduces the costs of private housing. Industry representatives emphasize that this is positive. But further steps are needed to provide noticeable relief. The initiative welcomes the new funding for ecological new buildings and environmentally friendly renovations as an important step towards more sustainable buildings.

Further measures are needed to secure the long-term need for housing in Austria and jobs in the construction industry. In addition to the improvements in housing subsidies and lending guidelines, it is necessary to provide further tax incentives for investments in residential construction and to enable more new construction by modernizing building regulations – for example through simplified additions, which would also reduce further soil sealing.

In order to implement and expand the currently discussed housing package more quickly, the federal states must also be intensively involved in the discussions, the industry representatives conclude.

About “More at home in Austria!”

“More at home’ in Austria!” is an initiative of leading companies and institutions in the Austrian construction and building materials industry to promote housing construction in Austria. It was initiated to draw attention to the impending housing shortage, rent increases and increasing unemployment that are looming due to the current backlog in housing construction. In order to secure the increasing housing needs of a growing Austrian population, the initiative has developed a housing construction agenda with concrete solutions and demands, including changes to lending guidelines for housing creation, funding reforms, investment incentives and reductions in bureaucracy. Initiators and co-sponsors (as of January 2024) of “More Home’ in Austria!” are: ACO, ARDEX, Federal Guild of Construction in the WKO, Baumit, Domoferm, Friedl, hagebau, Holcim, Internorm, J. and A. Frischeis, PCI, Profibaustoffe, RWA Salzburg, RWA Lagerhaus, Saint Gobain, Schiedl , Sopro, Teubl, Wienerberger Austria.

Questions & Contact:

Press office “More at home in Austria!”
Philipp Grüll, Skills | Team Farner, gruell@skills.at, +43 664 88348287