Half of the executive boards of the 264 Volks- and Raiffeisenbanken within Genoverband e.V. have identified an urgent need for new housing through additional housing completions in their regional markets. This assessment indicates a significant housing gap across the entire association area, which is not exclusively limited to metropolitan regions but exists nationwide.
According to the banks' representatives, state funding programmes and promotional banks are only of limited help. 68 per cent of respondents stated that the process for applying for funding is currently too complicated, while 62 per cent criticised the processing time as too long. Additionally, 54 per cent of banks criticised the high personnel and organisational costs incurred for handling funding measures.
Michael Hoeck, Chairman of the Board of Genoverband, emphasised the urgent need to resolve the new build backlog. He called for optimal housing-related funding. Although 54 per cent of banks consider support through state programmes for private residential construction financing helpful, approximately a quarter of respondents rated it as neutral or unhelpful. Hoeck expressed the wish that almost all banks should assess the funding positively, as there is still considerable potential for improvement here.
This assessment is reflected in the fact that 30 per cent of banks even take an extreme position, suggesting to completely forgo funding measures and instead abolish the real estate transfer tax. Hoeck commented on this by pointing out that, de facto, both are necessary: significantly improved funding and the abolition of this tax.
Transparency in Financing Criteria
As part of the survey, banks were also asked to rank the most important criteria for lending. This is intended to help potential property buyers better understand the relevant factors for a financing decision. Mr. Hoeck stressed that such transparency could lower the inhibition threshold for financing inquiries, as the fear of considering a property wish unrealistic is often unfounded. Knowledge of the assessment criteria increases the chances of successful loan approval.
- —Assessment of the buyer's creditworthiness: 76 per cent of banks named this as the most important criterion.
- —Reliability of the borrower / Previous payment behaviour: Ranked second.
- —Amount of the borrower's existing equity: Follows in third place.
- —Attractiveness of the property: Ranks fourth among the criteria.
The ranking shows that personal factors such as creditworthiness and perceived reliability, often based on an existing customer relationship, rank above the attractiveness of the property and the amount of equity. This, according to Hoeck, is particularly advantageous in the cooperative business model, as banks know their customers, some of whom are long-standing members, and the regional property markets precisely. Construction financing business at Volks- and Raiffeisenbanken is advisory-intensive, from which both sides benefit through well-informed decisions.
Bureaucratic Burdens and Political Uncertainties
Bank executives also raised concerns regarding altered regulatory and political frameworks. A majority of 70 per cent of banks complained about a high or very high effort due to the reporting obligation for real estate financing statistics (WIFSta) to the Deutsche Bundesbank, introduced in 2023. Hoeck explained that the introduction represented a major challenge for personnel resources, and a significant additional effort remains in ongoing operations, as technical systems often require manual intervention to adapt to reporting obligations. The rising costs for this would ultimately be borne not only by the banks but also by the borrowers.
The reformed Building Energy Act is not expected to be a stimulus for financing business by 63 per cent of banks; only 23 per cent predict a slight increase in demand. Furthermore, the political discussion about the "socialisation of housing companies" generates widespread uncertainty. Only a minority of 37 per cent of Volks- and Raiffeisenbanken believe that possible effects of such a measure would remain limited to Berlin.
