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Govt Targets Rural Areas with Special Home Purchase Scheme

MTI-Hungary Today 2019.02.21.

The government has decided to introduce a special version of its Home Purchase Subsidy Scheme for Families, known by its Hungarian acronym “CSOK”, targeting rural areas as part of the development scheme dubbed “Hungarian village”, Gergely Gulyás, the Head of the Prime Minister’s Office, told a regular press conference on Thursday.

The programme will be tailored to the needs of towns and villages with fewer than 5,000 residents where the number of inhabitants has decreased by more than the Hungarian average since 2003, he said. It will affect some 2031 villages, he added.

The same rules will apply as for the regular CSOK, with 600,000 forints (EUR 1,890) support available after one child, 2.6 million forints after two children and 10 million forints after three children, he said. However, in the case of the affected villages, the support can also be used for buying as well as expanding and revamping secondhand homes, he added.

The new scheme is planned to be launched on July 1 or on September 1 the latest.

The government estimates that the scheme will cost 70-80 billion forints each year, he said, though it could reach 100 billion.

In a bid to make villages more attractive for residents and prevent depopulation, the government has allocated 150 billion forints for its “Hungarian Villages” scheme, Gulyás said. Most of the funds — 50 billion forints in the first year and 75 billion in subsequent years — will be used for road reconstruction, he said.