Mikhail Mishustin: “It is necessary to monitor the construction sector continuously. This sector is of great importance to the economy as it provides many people not only with housing but also with jobs.”
Mikhail Mishustin’s opening remarks:
Mikhail Mishustin held a strategic session on housing affordability
Mikhail Mishustin held a strategic session on housing affordability
Mikhail Mishustin held a strategic session on housing affordability
Mikhail Mishustin held a strategic session on housing affordability
Mikhail Mishustin held a strategic session on housing affordability
Good afternoon, colleagues.
We continue our strategic sessions.
The President stressed that housing is among the essentials in the life of any human or family. The Government is taking system-wide action to improve the quality and affordability of housing for all Russian citizens. Today’s session is very important. We will discuss this matter in detail and talk about existing mortgage programmes with a concessionary interest rate. Family mortgage is the most popular programme among them. Earlier this year, we expanded the family mortgage programme to include resale housing in the Russian regions with fewer housing development projects. There are also mortgage programmes for the Russian Far East, the Russian Arctic, the new regions, and rural areas.
The loans can be used to purchase or build a private house. It is important to note that the scope of private housing grows consistently.
However, the demand in the housing market is in decline for a number of reasons. We recently discussed this crucial topic at a meeting of the State Council Presidium on developing infrastructure for life.
We have developed solutions to overturn this trend. Firstly, these solutions concern additional fees charged by banks when they issue concessionary loans. The President said this practice is unacceptable and noted that the state already subsidises concessionary loans. As a result, all major lending organisations have cancelled these fees.
We have also expanded the limits of mortgage programmes to ensure that developers can continue their projects and new housing enters the market, so that people can find suitable housing.
Furthermore, in cooperation with the Bank of Russia, we have developed an initiative for temporarily subsidising the interest rates of project financing loans for new housing. Primarily, the initiative is to improve the situation in small cities where there are fewer development projects and where additional support is necessary to finish the projects scheduled for completion next year. This solution will help developers finish their ongoing projects and launch new ones. Most importantly, residents will move in as initially scheduled.
It is necessary to monitor the construction sector continuously. This sector is of great importance to the economy as it provides many people not only with housing but also with jobs.
In the past years, the sector has developed rapidly, accumulating certain resilience. It is crucial to maintain the potential that is mainly necessary to fulfill the tasks under the Infrastructure for Life national project, which includes commissioning 660 mln sq m of new housing by 2030 and relocating residents from at least 6.2 mln sq m of dilapidated housing.
The President underlined the importance of expanding the scope of private housing as well as providing plots of land and connecting them to essential infrastructure. There must be reliable mechanisms for our citizens to be able to invest in private housing. We have already taken action regarding this matter.
Colleagues, the President issued more instructions at the previous meeting of the State Council Presidium. I suggest we discuss today measures necessary for creating the optimal conditions for the housing industry and for improving the affordability of housing for people.
