Social Democrats (SPD) propose new instrument to boost homeownership rate
After Federal Finance Minister Christian Lindner (FDP) scheduled initial consultations on reforming Germany’s real estate transfer tax system to give the country’s federal states more freedom and thereby make it easier to buy and sell real estate, the SPD is working on other instruments to promote homeownership. Kevin Kühnert (SPD) is pushing for a state programme to replace equity in the purchase of residential property. The aim is to enable households with stable incomes but without large financial reserves to buy their own homes. Jürgen Michael Schick, President of the German real estate association IVD, has welcomed this initiative. The largest hurdle for many potential buyers is having a big enough deposit for a home, which is why young families in particular often need to rely on inheritances or support from their parents. As interest rates on construction loans have risen, it has become virtually impossible for people to build their own homes from their regular incomes alone, according to the IVD.