Youth housing scheme exacerbating urban sprawl?

Photo: Glowimages

The subsidy programme, launched in early 2014, was meant to help young people buy their own flat.

Unlike the previous programme, it is directed at both single people and married couples.

However, the price limits in the scheme are set at levels that, at current market prices, do not allow for purchases in the central parts of Poland's biggest cities.

“The MdM programme does not support the sustainable development of cities,” Jakub Zagorski, sales director at Skanska Residential Development Poland said.

“Many of the flats that financing is available for are located far from city centres and the young are migrating there. Continuing the programme may increase an uncontrolled growth of agglomerations and generate additional costs for local authorities and society,” he said.

Konrad Plochocki from the Polish Property Developers Association (PZFD) agrees.

“Areas where subsidies for flats are available are located in city districts that are further out, with worse transport options.

The nature of the programme supports the urban sprawl process,” he said.

Plochocki added that the outcome of the scheme is not in line with recommendations set by the European Commission, which supports more dense city centres.

The PZFD is campaigning for changes in the MdM programme. First of all, the price limits need to be increased, Plochocki said.

Another requested change is for funds assigned to the programme for a given year to be transferred to the next one if they are not fully disposed of. Developers also want the scheme to work as long as there are funds left for it and not until a set deadline. (kw)