The Hungarian government has ordered the preparation of a new housing construction programme aimed specifically at increasing the supply of homes and improving access to affordable housing.
The Wekerle Housing Construction Programme is to be backed by €550 million of EU funding, with the possibility of attracting additional bank and private-sector financing.
Dávid Vitézy, Minister for Transport and Investment, has said that additional financing could potentially increase the total amount available to as much as €2 billion. The government resolution gives Vitézy and András Kármán, Minister of Finance, until 30 September to prepare the programme.
For me, the important part is that this is explicitly about increasing housing supply.
What Would the Programme Cover?
The programme is intended to increase housing construction and the supply of affordable homes.
Brownfield sites are specifically identified as a priority for development.
The programme is also intended to encourage institutional rental housing and student accommodation, energy-efficient and sustainable construction and the long-term participation of institutional investors.
Another objective is to make the regulatory and approval process for housing developments simpler and more predictable.
New housing development would also be considered alongside transport, utilities and community infrastructure, while cooperation with municipalities is included among the programme's objectives.
What Happens Next?
The €550 million figure does not mean that construction worth €550 million is about to begin.
The government resolution requires the programme to be prepared by 30 September. The information released so far does not specify how many homes would be built, where they would be located, how the funding would be allocated or when construction would begin.
There are also two further deadlines.
By 30 November, Vitézy must make recommendations on whether the status of certain priority investment projects should be retained, modified or removed.
By 31 December, Vitézy and Kármán must prepare a financial and regulatory framework intended to encourage the development of affordable rental housing.
Why Housing Supply Matters
This follows the recent discussion about the Hungarian government's housing-related expenditure, much of which supports households financing property purchases.
The Wekerle programme is different because its stated objectives specifically include increasing housing construction and expanding supply. That makes the next stage particularly important.
We now know the funding identified for the programme, its main objectives and the deadlines for preparing it. What we do not yet know is how many additional homes it could ultimately produce.
For me, that will be the number that matters most.