News Article construction Czech Republic government housing rental residential
by Property Forum | Residential

The Czech government has approved the provision of CZK 800 million (€34.27 million) to a programme to support the construction of rental housing. Most of the money will be allocated to municipalities, but private investors who build apartments in cooperation with the municipality can also receive a part of it. Deputy Prime Minister and Regional Development Minister Ivan Bartoš (Pirates) told to čtk.

Deputy Prime Minister Ivan Bartoš said that CZK 500 million (u21.42 million) is allocated to the municipalities, while legal entities such as charities can receive additional money. Private investors can get the grant if they cooperate with municipalities on construction and provide at least a quarter of the built flats to municipalities for use. "Municipalities will also benefit from projects that receive support from private investors. In this case, the municipalities will be able to determine to whom at least a quarter of the apartments will be rented. We want to significantly strengthen similar cooperation between municipalities and the private sector in the future," Bartoš said.

Flats built with the aid will have to be offered at a price that is usual in the local area to avoid further increases in housing prices, Bartoš said. They should mainly be occupied by people who have problems reaching a property on the market in a given locality and have no other housing options. The support will consist of two parts, a subsidy of up to 25 percent and a favourable loan. The total can reach up to 90 per cent of the cost. The money will be gradually returned to the scheme and will support further construction.

Bartoš also said that support for rental housing should also serve to increase its share in the Czech Republic. Currently, he said, it is about 20 percent, while owner-occupied housing is 80 percent. Bringing the proportions of both types of housing closer would also help achieve affordable prices, he said.