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The New Observer
December 23, 2015
The Hungarian government has launched a scheme to grant enough cash to buy a detached house to all young couples agreeing to have at least three children.
The scheme—designed to boost the Hungarian birthrate—was announced at a recent government press conference in the Hungarian Parliament building attended by the Minister heading the Prime Minister’s Office, János Lázár.
The scheme will see the state grant a non-repayable aid package of 10 million Hungarian Forints (HUF) to all couples agreeing to have three children within ten years.
According to the Global Property Guide, the average detached house price in Hungary is HUF 9.3 million.
Minister Lázár said that the grant was part of the extension of the government’s “family first home benefit.”
In addition to the non-repayable aid, families agreeing to have three children may also be eligible for a further loan of HUF 10 million for a term of twenty-five years, the interest on which may not be higher than 3 percent.
“In order to make settling in the first home as secure as possible, upon the purchase of a new home, the aid will increase to HUF 2.6 million in the case of two children,” he added.
The Minister also said that those who have already applied for the family first home benefit previously or for the social policy benefit which was available earlier, may request aid of an amount reduced by the grants already received.
“In the case of the purchase of new homes, the restrictions on the maximum number of square meters have been abolished from among the conditions of eligibility for the aid, even in the case of a single child. The upper age limit of eligibility for the aid continues to remain 40 years.”
In addition, VAT on the purchase of new homes will be reduced from 27 percent to 5 percent as of January 1, 2016. Self-financed home-building projects will also be subjected to a reclaimable HUF 5 million reduction.
An official statement from the Hungarian Central Statistical Office said that in the first ten months of 2015, some 76,531 children were born in Hungary, half a percent more than the previous year.
The number of deaths for the same period was 109,822, which means that in real terms, the population is still declining, although at a far slower rate than before. This translates as 9.3 live births and 13.4 deaths per thousand inhabitants.
There were 40,845 marriages registered in Hungary during the period January–October 2015, 16 percent higher than the same period the previous year.
