In today's article, we'll discuss the new housing program announced by the Ministry of Development and Technology, "Mieszkanie na Start." This program is intended to replace the "Safe 2 Percent Loan" program. Therefore, we'd like to highlight its assumptions and point out the differences between these two forms of support. We'll also outline how, in our opinion, it could impact the real estate market.
First of all, we'd like to clarify that work on the "Mieszkanie na Start" program is still in the process of industry consultations, including with banks and the Polish Association of Developers. Therefore, it's possible that its assumptions may change, which we will, of course, keep you updated. However, we believe it's worthwhile to prepare for the upcoming program now and understand its basic assumptions.
As with the "Safe 2 Percent Loan" program, the new program is aimed specifically at young people without homes . A significant change compared to the previous program is for unmarried individuals (e.g., those in a civil partnership) to apply for funding large families can apply for funding, even if they already own a home or apartment.
The most important difference between the programs is that "Mieszkanie na Start" does not impose an upper loan limit . This means that applicants are not limited by price when choosing a property. As a reminder, under the "Bezpieczny Kredyt Dwie procent" program, the limit was PLN 500,000 for a single person and PLN 600,000 for a couple. However, this does not mean that the subsidy will be granted for the entire loan; on the contrary, it will only be calculated up to a specified amount of capital. According to the proposal presented by the ministry, the subsidy amount will increase with the number of people in the household. For example, for a single person, the loan amount eligible for the subsidy will be PLN 200,000, while for a five-person household, this amount will increase to PLN 600,000.
The lack of a limit on the loan amount should be considered a step in the right direction, as in the previous program the upper loan amount for which subsidies were available basically excluded from the program people living in the largest cities, where real estate prices made it impossible to use the program or allowed the purchase of small premises.
The Ministry, aware of the dramatic price differences between large cities and smaller towns, proposed increasing the limit of the capital amount to which subsidies will be granted in accordance with the following assumptions:
- In the case of purchasing a flat in a city with district rights which is the capital of a voivodeship, for which the replacement value of 1 m2 of a residential premises announced by the relevant voivode is at least 15% higher than the value announced for the entire country, the limit is to be increased by at least 10%,
- In cities where the replacement value of 1 m2 of a residential premises is at least 30% higher, the base amounts of subsidies applied are to be 20% higher.
The "Mieszkanie na Start" program will also include an income criterion for receiving loan subsidies. According to the ministry's proposal, the thresholds will be as follows:
- PLN 10,000 gross per month for a single-person household,
- PLN 18,000 gross per month for a two-person household,
- PLN 23,000 gross per month for a three-person household,
- PLN 28,000 gross per month for a four-person household,
- PLN 33,000 gross per month for a five-person or larger household.
Exceeding the amounts indicated above will not mean that you will not be eligible for the subsidy. According to the ministry's proposal, if a household exceeds the limit, the subsidy will be reduced. In the case of a single-person household, the subsidy will be reduced by 0.50 PLN for each złoty exceeded, and in other cases by 0.25 PLN.
In accordance with the Budget Act for 2024, approximately PLN 500 million .
The final important piece of information is the program's timeline. According to the ministry's assumptions, loan installment subsidies will be available for loans taken out before the end of 2025.
To sum up, "Mieszkanie na Start" as a direct successor to the "Safe Credit Two Percent" program may be one of the reasons for the economic recovery of the real estate market, which has still not fully recovered after the Covid-19 pandemic and the ongoing armed conflict in the territory of Ukraine.
However, as the Polish Association of Developers, among others, points out, government action should not be solely focused on increasing demand. It is also important to take steps in the opposite direction, i.e., implement reforms aimed at increasing supply, for example, by increasing the amount of land available for development or simplifying the process of obtaining necessary administrative and construction permits. Action aimed at the supply side could stem the growth of residential property prices, as it would reduce investment costs.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of January 29, 2024
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