New proposal could exclude newcomers from moving into Hungarian towns
Hungarian towns may soon have the power to limit newcomers from settling, as a new proposal seeks to protect local communities and prevent market distortions. The plan, discussed by officials in Jász-Nagykun-Szolnok County, would grant municipalities the legal right to regulate property sales, ensuring locals have priority when buying homes. Some argue this would help preserve community identity and prevent settlements from becoming mere dormitory towns, while critics warn of downsides.
Newcomers banned from settling in Hungarian towns?
Szoljon writes that a new proposal could see restrictions placed on newcomers settling in Hungarian towns, as local governments seek to protect their communities. At a consultation organised by the Jász-Nagykun-Szolnok County Government Office, officials discussed the legal means of self-defence against newcomers. State Secretary Csaba Latorcai highlighted the importance of safeguarding community values and assisting local governments in this effort. He noted that Hungary has seen significant demographic shifts over the past three decades, with population decline affecting regions like Jász-Nagykun-Szolnok. While suburban migration is a broader trend, many former residents of Szolnok are not just moving to nearby settlements but leaving the region altogether, contributing to an ongoing shift from eastern to western Hungary.
Fighting the negative effects
SokszĂnű VidĂ©k also notes that Latorcai warned that the Budapest agglomeration is expanding and will likely encompass Szolnok in the coming years due to ongoing outward migration. Latorcai says:
The municipalities here should be prevented from becoming ‘dormitory towns’. This is because dormant settlements tend to lose their sense of community life, cultural specificity and, ultimately, their identity and competitiveness.
He stressed the need to prevent local settlements from becoming a place where people only return to sleep and rest. The impact of migration is also reshaping the real estate market in Hungarian towns, with newcomers either driving up property prices, making homeownership unattainable for locals, or, in some areas, contributing to a sharp decline in property values.
Preventing market distortions
The proposed measures aim to give local authorities in Hungarian towns greater control over property sales to prevent market distortions caused by incoming residents. In some areas, newcomers are inflating housing prices, making it difficult for locals to afford homes, while in others, an oversupply is driving property values down. To address these challenges, the government plans to grant municipalities legal powers to regulate property ownership.
How would this proposal work?
Under the proposal, local governments could restrict outsiders from purchasing property or introduce a right of first refusal, ensuring that locals have priority if they can meet the asking price. Additional measures may include conditions on property acquisition, residency requirements, and tax adjustments. However, these tools would not be mandatory, allowing each municipality to decide whether to implement restrictions, apply them temporarily, or limit them to specific areas within their jurisdiction.
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