The trade Union IG Bau calls for a minimum of six billion Euro for social housing per year. The Federation and the Länder should spend considerably more money for new social housing. A study of the IG Bau, the German tenants ‘ Association and of other associations revealed that only one-third of the actual demand will be built. The study will be presented at the Wohnungsbautag this Thursday in Berlin.
according to The study, are tense in 138 of the approximately 400 counties and cities the housing markets. The Chairman of IG Bau, Robert Coward, said: “at Least 80.000 new social rented housing are needed each year. With the previous total of 1.5 billion euros per year from the Federal government of the enormous loss that the social rental housing is not stop.”
reason of the expiration of the so-called occupancy of the binding. After all, who builds a social housing that is funded by the state, applies to municipal housing companies as well as for private investors. In return, the apartment is subject to certain requirements, especially in the case of the question of who is allowed to inhabit it. After a few years, usually between 15 and 25, depending on the state, and the promotion will expire in this binding. The apartment can then be used as a normal apartment rents. Almost any owner or any owner makes, because you earn more. In the past years, thousands of apartments out of the bond fell, the number of social housing declined.
At the same time, the new building is faltering. Also because since 2007 the Länder are responsible for new social housing. Here it is, however, often lack the necessary financial resources. As compensation, the countries receive money from the Federal government, but you have to top up the Rest with their own funds. It is missing here, is so built less than actually needed.
According to the IG Bau, the increase in Rent will play a large role. Due to the strong rise in the past few years, a third of the population in large cities is entitled to a social apartment would now theoretically. The pressure was so high, to create affordable housing for people with average income. The IG Bau’s demands, therefore, that the government should invest at least three billion euros per year.
The study also notes that new homes are significantly smaller than six years ago. Thus, the average living area of new apartments to eleven square meters and nearly ten percent decline. As causes, the investigation called the significantly increased construction and purchase prices, but also a growing demand for smaller dwellings.
In Munich, Berlin and Hamburg Rent decline in new Contracts
the study was Prepared by the opinion research Institute Prognos. Their clients include numerous associations that have an interest in more built or the Build easier. This construction and the German tenants ‘ Association, the Central Association of German construction industry and the Federal Association of German building materials trade includes, in addition to the IG.
Meanwhile, a study by the research and consultancy firm F+B showed that Rents have declined in new Contracts in the first three months of the year, by 0.3 percent compared to the last quarter of 2018. For the first time since the year 2005, the housing index of the Institute recorded a decline.
Noteworthy is the fact that Rent rooms in the Metropolitan and large cities went with the highly competitive housing. In Munich, for example, of 1.3 percent. Also in Berlin, Hamburg and Frankfurt am Main, rental prices decreased in the case of re-letting, therefore, easily. A possible explanation could be a brake on the introduction of the the Rental price. An impact is likely but also have the debate to strongly rising Rents, have formed in many cities to protest covenants.
Overall, the housing index, however, came to the conclusion that the prices for apartments continued to increase. Reason for the price increases in condominiums, but also further increases the Rent in cities like Cologne and Stuttgart.