KfW: Subsidy stop after Habeck-Hammer – It is now becoming very bitter for home builders

Created: 01/26/2022, 10:50 am

By: Franziska Schwarz

Climate Minister Robert Habeck (Greens) © Thomas Imo/Imago

The KfW subsidy freeze turned the plans of numerous home buyers upside down.

Experts expect far-reaching consequences.

Berlin – After the KfW funding freeze for the EH55 and EH40 standards, the question is: what does that mean for those affected?

The criticism from associations is massive*, the topic is on the agenda.

The planned funding volume has been used up.

Energetic renovations are to be subsidized again, "as soon as the appropriate budgetary funds are made available," reported the AFP news agency on Tuesday.

In the case of EH40 new buildings, there should be a repositioning quickly.

Together with Klara Geywitz's (SPD*) Ministry of Construction and Christian Lindner's (FDP*) Ministry of Finance, work is being done "at high pressure", said Robert Habeck's (Greens*) Ministry of Economic Affairs*.

Apparently there is also an increase.

"In the long term I (...) expect that the federal funding measures will be increased, if only to achieve the renovation of the portfolio," said Conversio Group Managing Director Jens Rautenberg to the Handelsblatt.

Construction costs after funding freeze: "Real estate prices will rise"

Nevertheless: In his opinion, the freeze on subsidies will definitely have consequences for house builders or buyers.

Rautenberg assumes that the previous subsidy was 200 to 300 euros per square meter.

They're gone now.

“And the result will be: The higher costs will be passed on to the consumer, at least in part.

Real estate prices will continue to rise,” Rautenberg told

.

Expert tip for homebuyers: "Now get down to business"

Michael Neumann from the financing broker Dr.

Klein in an interview with the

.

Not just because of the funding freeze.

But also because the financial supervisory authority has asked the banks to provide more equity buffers for construction financing.

In addition, there is the interest rate development, for which Neumann predicts a slow and not very strong upward movement.

"Anyone who has found the right property should now get down to business and not hope that prices will fall in two or three years," he advises.

Groko announces stop of KfW funding - rush follows

The federal government surprisingly announced on Monday that the current support from the state KfW for energy-efficient buildings was stopped with immediate effect.

The reason is “a massive climate policy and fiscal mismanagement in recent years.”

After the grand coalition had announced the stop for the end of January 2022 in November 2021, there was a real rush for funding.

Now the federal government has pulled the ripcord.