The housing industry complains about liquidity gaps.
(Photo: dpa)
Berlin The housing industry feels that the federal government’s relief package does not support it sufficiently. The President of the Federal Association of German Housing and Real Estate Companies (GdW), Axel Gedaschko, told the Handelsblatt: “We continue to push for liquidity aid that actually takes effect.” The Haus & Grund owners’ association called for private landlords not to be disadvantaged.
According to the decision of the coalition committee of SPD, Greens and FDP, the housing industry should be helped in view of rising energy prices. In order to support “municipal and social housing companies” in the face of rising energy costs, the temporary subsidy for operating resources in the “Investment loan for municipal and social enterprises” from the Kreditanstalt für Wiederaufbau (KfW) will be extended until December 31, 2023.
According to the resolution, private housing companies can take advantage of the regular KfW development loan programs or KfW’s “European Recovery Program” (ERP). In the event of temporary liquidity bottlenecks, the regular guarantee programs of the federal and state governments can also be used.
The landlords are currently suffering from the sharp rise in energy prices as a result of the Russian war of aggression against Ukraine. You must advance the ancillary costs and may only claim the actual heating costs from the tenants and adjust the deductions after the annual statement.
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According to a survey by the GdW, which represents around 3,000 mainly cooperative and municipal housing companies, 38 percent of the housing companies cannot handle the increases in gas prices from their own resources and need state help.
Federal Building Minister Klara Geywitz (SPD) had said with regard to the third relief package: “With the decisions taken, we are helping the housing companies in Germany not to get into trouble as a result of the Ukraine war.”
GdW calls for “actually effective” liquidity support
But the housing industry sees it differently. GdW President Gedaschko criticized that Not only the question remains how the Traffic light define “social housing companies” at all. Also the temporary funding of working capital in the KfW investment loan does not help the housing companies. It does not serve to bridge a liquidity gap.
The problems arise because the landlords have to lay out large sums of money. “In this respect, the rising energy costs do not affect the housing companies directly, but only indirectly,” explained Gedaschko.
For investments, the housing companies primarily have the programs of the Federal Funding for Efficient Buildings (BEG) at their disposal. “But these don’t help with the problem of the liquidity gap,” said the GdW President.
The landlords are currently suffering from the sharp rise in energy prices as a result of the Russian war of aggression against Ukraine.
(Photo: dpa)
The promotional loan programs and guarantees mentioned for private housing companies are also not really effective with the existing problem of “liquidity gaps”. Gedaschko calculated: “Depending on the risk assessment, the interest rates are up to ten percent.” The interest rates would further burden the liquidity and earnings of the housing companies.
More Handelsblatt articles on the third relief package:
“We therefore continue to push for liquidity aid that actually takes effect,” said the GdW President of the Handelsblatt. It also needs to be clarified what is meant by “social housing companies”.
Discussions have already taken place with the head of the Ministry of Construction, with a positive signal. Gedaschko announced: “We will now hold further clarifying talks at very short notice. Because: It’s very urgent!”
Owners’ association criticizes “exclusive support for municipal companies”
The association Haus & Grund, which represents private landlords in Germany, who, according to the organization, provide around two thirds of all rental apartments in Germany, criticizes the aim of the traffic light decision.
President Kai Warnecke told the Handelsblatt: “The exclusive support of municipal companies, which make up just under ten percent of the housing market, is an intervention in the housing market that distorts competition.” If private landlords do not also receive this protection, Haus & Grund will be examined by the European Commission of this intervention in the internal market. “Corresponding procedures in France have already been successful,” Warnecke warned.
Haus & Grund had recently sent a letter to Chancellor Olaf Scholz (SPD). It said that much of the feedback from the more than 910,000 members was dramatic and mostly ended with the realization that the rental had to be given up.
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