Germany currently has the lowest level of property ownership in the EU. To address this, the SPD has revealed plans for an initiative that will help people buy a house in Germany.

SPD looking to promote property ownership

The SPD, the largest political party in Germany’s ruling coalition, has revealed that it wants to launch an initiative aimed at helping people buy property in Germany. “The ultimate aim is to replace equity,” said SPD Secretary General Kevin Kühnert in an interview with the Augsburger Allgemeine. He explained that the state-run initiative would help households with stable incomes, but without savings, get onto the property ladder.

Kühnert said that despite people bringing home decent salaries, “if you can’t put anything into the financing from your own pocket, then the purchase doesn’t even happen. That’s why we’re currently working with the Ministry of Construction to develop a subsidy that will do just that.”

Germans pessimistic about buying property

Germany has the lowest level of property ownership in the EU, with government figures suggesting that only 42,1 percent of households actually own the house they live in. This leaves the remaining 57,9 percent stuck renting. A recent survey by mortgage broker Interhyp revealed that most renters in Germany believe they will never be able to afford a house in their local area.

Kühnert also told the Augsburger Allgemeine that the government was confident it could fulfil its target of bolstering the housing market and building 400.000 rental properties a year, “if everyone does their part.” However, the project has already been considered a failure by industry experts and associations, due to an increase in the cost of building materials, the shrinking labour market, strict regulations and building permits not being issued fast enough.