Russians under 35 were offered to compensate half of the cost of renting housing. How is that?

CrimeaPRESS reports:

The Ministry of Construction, Housing and Communal Services of Russia has proposed subsidizing half the cost of renting housing for young people — Russians under 35 years old. This was reported «News» with reference to the agency.

Program conditions

In order to receive compensation from the Ministry of Construction, Russians must meet the condition — in parallel to accumulate funds for a down payment to buy an apartment in a new building on a mortgage. About 310 thousand people will be able to participate in the program annually. The target audience of the project is Russians aged 23–27.

Deputy head of the ministry Nikita Stasishin specified that the details of receiving benefits would be disclosed within the next couple of months. The program is being developed by the Ministry of Construction together with Dom.RF and Rosmolodezh. The timing of the launch of the initiative has not yet been specified.

In January, Russian President Vladimir Putin instructed to submit proposals for preferential mortgages for young people. He appointed Prime Minister Mikhail Mishustin in charge. In December last year, Putin announced the expansion of family mortgages at six percent per annum.

Expert opinions

The Ministry of Construction noted that the program will be effective for young people and will not require serious budget expenditures. Alexander Yakubovsky, a member of the State Duma Committee on Construction and Housing and Public Utilities, said that the initiative would have a positive impact on the demographic situation in the country and on the standard of living of young professionals. However, there is a risk that increased demand will lead to higher apartment prices.

Earlier it was reported that in Russia rent of apartments fell sharply. Prices for renting the most popular one-room apartments have fallen by 10-15 percent.

GloraX First Vice President Alexander Andrianov added that the program will help develop the rental housing market in Russia and make it more transparent. In turn, the president of Osnova Group of Companies, Alexander Ruchev, called targeted support for various categories of home buyers the right and timely decision.

Situation in Russia

The Central Bank of Russia is concerned about the rapid growth in the issuance of mortgages in Russia. This statement was made by the head of the financial regulator Elvira Nabiullina. According to her, the Central Bank will consider introducing quantitative restrictions on the issuance of risky mortgages by banks.

20 percent is the minimum down payment on a mortgage from June 1, 2023

During the St. Petersburg International Economic Forum (SPIEF), Chairman of the Board of Directors of Alfa-Bank Oleg Sysuev predicted record mortgage lending in Russia in 2023. This opinion was also expressed by representatives of VTB, who predicted that the volume of housing loans in 2023 would exceed six trillion rubles.

Since June 1, the Central Bank has increased the minimum installment on mortgages in Russia from 10 to 20 percent. In another six months, from January 1, 2024, 30 percent of the value of the property will need to be paid into a mortgage to purchase a home.

source: Lenta.ru

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