Improvements Proposed by the Commission for Enhanced Housing Standards
In an effort to increase homeownership rates and make housing more accessible for younger generations, the Freie Wähler party has proposed a series of reforms inspired by the Netherlands. Engin Eroglu, deputy federal chairman of the party, believes that these reforms could serve as a model for boosting homeownership in Germany.
One of the key proposals is the waiver of the real estate transfer tax for people under 35 years of age when buying their first home. This measure, which mirrors a policy in the Netherlands, aims to make it easier for younger first-time buyers to acquire self-occupied properties.
The Freie Wähler also suggests adjusting European sustainability criteria to prevent the increasingly precarious financial situation of project developers and contractors. This adjustment could potentially reduce the purchase-related costs, which currently range from 9 to 12 percent of the purchase price in Germany, to be reduced to 2-3 percent, following the Netherlands' example.
The party also seeks to relieve the construction and housing industry in Germany of bureaucracy, from the supply of domestic raw materials to the easier awarding of construction contracts. This deregulation could help boost construction activities and make housing more affordable.
Engin Eroglu believes that many parallels can be drawn between the median income in both Germany and the Netherlands regarding housing construction and homeownership. He argues that living in one's own home should not be a privilege of the social elites but accessible to the middle of the population.
In a recent statement, Eroglu emphasised the importance of a high homeownership rate, stating that it creates intergenerational values and increases personal freedom in a country. He also believes that a high homeownership rate makes a country crisis-resistant and protects against old-age poverty.
The Freie Wähler also proposes local extraction of construction-relevant raw materials such as gravel to boost construction activities in Germany. This move could help reduce costs and promote sustainable practices in the construction industry.
Despite these proposals, specific details about the policies and measures proposed by the Freie Wähler or Engin Eroglu regarding increasing homeownership in Germany are not yet available. However, the Freie Wähler is known for advocating policies supporting homeowners and smaller-scale construction, emphasising deregulation, reducing bureaucracy, and fostering affordable housing development.
According to recent surveys, more than 74 percent of young people in Germany wish to own their own home, yet the homeownership rate in Germany has been stagnant at 47 percent (22 percent below the EU average) for years. With the Freie Wähler's proposed reforms, it remains to be seen whether Germany can follow in the footsteps of the Netherlands and increase its homeownership rate.
- The Freie Wähler party, following the Netherlands' example, is suggesting the waiver of the real estate transfer tax for individuals under 35 years old when buying their first home, a measure aimed at encouraging homeownership among younger generations.
- The Freie Wähler also seeks to adjust European sustainability criteria and relieve the construction and housing industry in Germany of bureaucracy, aiming to reduce purchase-related costs, boost construction activities, and make housing more affordable.
- Engin Eroglu, deputy federal chairman of the Freie Wähler, believes that lower costs and deregulation could make homeownership more accessible to the middle of the population, reducing it from a privilege of the social elites.
- The Freie Wähler party also proposes local extraction of construction-relevant raw materials such as gravel, hoping to reduce costs and promote sustainable practices within the construction industry.
