The State of Lower Saxony has presented its housing funding programme for 2026, scheduled to come into force on 1 July. The Association of Housing and Real Estate Industry Lower Saxony Bremen (vdw) largely assesses the revised guidelines as satisfactory, following an unexpected six-month delay. This redesign aims to improve access to affordable housing in the region, thereby supporting a broader segment of the population in urgent need of suitable accommodation.
Dr. Susanne Schmitt, Managing Director of the vdw, expressed gratitude to the State of Lower Saxony and particularly to Construction Minister Grant Hendrik Tonne. She highlighted that numerous suggestions from the socially oriented housing industry had been taken into account. This significantly contributes to strengthening affordable housing in Lower Saxony and benefits tens of thousands of tenant households seeking cost-effective and contemporary accommodation.
Key Points of the New Funding Guidelines
According to the vdw's assessment, several aspects of the new funding landscape are particularly noteworthy. A central point is the approach of 80% standard funding in the new build sector. The association considers the combination of an interest-free loan and a 40% grant in the first funding pathway to be extremely attractive. This structure is expected to significantly increase the willingness to invest in the construction of subsidised housing units.
Furthermore, the vdw's long-standing demand for the introduction of a redemption subsidy in the second funding pathway has been realised. This adjustment, now enshrined in the guidelines, is expected to lead to increased construction of housing for households from the so-called working middle class. This expands the supply of affordable housing for a significant group of citizens.
- —80% standard funding in new builds regarded as fundamentally correct.
- —Attractiveness of the combination of an interest-free loan and a 40% grant in the first funding pathway.
- —Inclusion of the redemption subsidy in the second funding pathway, resulting from a long-standing vdw demand.
In addition to the positive assessment of the implemented measures, the vdw makes a further recommendation. The association proposes to further extend the current commitment period for publicly funded housing, which is currently 35 years. This measure is intended to ensure that housing funding primarily serves its social purpose and prevents misappropriation for real estate speculation. A longer commitment period would strengthen the sustainability of funding programmes and ensure the long-term preservation of affordable housing.
