NHG National Mortgage Guarantee has recognized the growing interest among first-time buyers for flexible, temporary housing and has pledged to make it easier for these buyers to access such properties. The organization, which is committed to responsible housing financing, highlighted the challenges faced by young home seekers, who are frustrated by the scarcity of affordable housing options, with over a third of them expressing interest in purchasing flexible homes on land with temporary residential designation.
Flexible homes, which are often cheaper and quicker to build than regular homes, offer an alternative solution for this demographic. These homes typically cost around 180,000 euros, significantly less than the average regular home priced at 450,000 euros. The affordability of these homes is largely due to their prefabricated construction and smaller size, with the main factor contributing to their cost being the temporary nature of the land they are built on.
NHG’s analysis indicates that the majority of home seekers aged 20 to 34, particularly first-time buyers, are actively seeking affordable housing options. Over half of these individuals have been searching for suitable homes for more than six months, highlighting the urgent need for alternative housing solutions. Flexible homes on temporary land offer an attractive solution, with lower monthly costs and the potential for entry into the owner-occupied market.
Potential buyers are primarily interested in purchasing these homes due to the lower monthly costs and the opportunity to enter the housing market. They set conditions for their purchase, including the ability to sell the home again after a few years without incurring debt and a preference for a good location with nearby amenities. Many buyers envision living in these homes for a period ranging from 10 years to 5 years.
Currently, flexible homes are predominantly used as rental properties, often provided by housing corporations. However, the purchase sector is lagging behind due to uncertainties associated with this new form of housing, which makes financing these properties almost impossible. NHG, in collaboration with the Ministry and Spatial Planning, lenders, housing corporations, and municipalities, is conducting an investigation to mitigate these uncertainties through the NHG guarantee. The objective is to launch a pilot project with one or two municipalities by the end of this year or early next year.
The introduction of this pilot aims to facilitate the financing of flexible homes on temporary land, making them more accessible to first-time buyers. By addressing the challenges faced by young home seekers, NHG is taking a significant step towards enhancing the housing market and promoting affordable housing solutions for the future generation of homeowners.
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