Obsession with the idea of home ownership is wrong, and therefore it is no longer necessary to increase the availability of mortgages in Russia. This was announced to Rossiyskaya Gazeta by Nadezhda Kosareva, President of the Institute for Urban Economics, Head of the Commission for Housing Policy of the Public Council under the Russian Ministry of Construction.
“Our basic mistake is that we are fixated on property ownership,” the expert emphasized, speaking about the extension of the preferential mortgage program. – Mortgages have become a routine part of life, and we must already leave it alone, we do not need to increase its availability. At the same time, we have absolutely no segments of the satisfaction of housing needs, which are in other countries: there is no civilized market rental of housing, a subsidized segment of non-commercial rent ”.
According to Kosareva’s calculations, Russia annually spends 200 billion rubles on property tax deductions when purchasing housing, including with a mortgage. The specialist advised to use this money for the construction of rental housing. “This could be used to build 4 million square meters of affordable housing per year and lease it to people with low incomes,” she said.
Kosareva also said that the only “plus” of the preferential mortgage program that developers took advantage of is that the reduced rate on housing loans allowed them to raise prices, and they were able to shift the increase in their costs for materials, labor and the transition to project financing. “We have analyzed 17 largest Russian agglomerations – and in almost all of them in 2020 there is an increase in housing prices amid falling incomes of the population,” the expert complained, stressing that this is a negative effect for housing policy.
Earlier in January, it became known that in Russia 57 percent of young people (under the age of 35) are ready to take out a mortgage to improve their living conditions. Currently, about 8.6 million (27 percent) 18-35 year olds live in rented housing.