Orbán cabinet’s new credit scheme could reshape Hungarian rental market

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Photo: depositphotos.com

The government’s recently announced Home Start programme, which will offer subsidised credit to first-time home buyers, could reshape Hungary’s rentals market, mitigating rising rents and boosting supply, property listings site ingatlan.com said on Monday.

New measure can reshape rental market

László Balogh, ingatlan.com‘s chief economist, said monthly payments on the Home Start credit would be around HUF 237,000 for the maximum HUF 50m loan, lower than the HUF 250,000 average monthly rent for a 50sqm flat in the capital.

He predicted that the Home Start programme could boost the popularity of 30-45sqm homes in Budapest and other big cities around the country. From September, the Home Start programme will offer first-time home buyers fixed 3pc loans up to HUF 50m. The value of homes for which the credit may be used is capped at HUF 1.5m/sqm.

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