IMPROVEMENT OF HOUSING FINANCING

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IMPROVEMENT OF HOUSING FINANCING

Journal Title: Демографія та соціальна економіка - Year 2018, Vol 3, Issue

Abstract

Providing the population with living space is a fundamentally important task of state social policy, which is fixed in the Constitution of Ukraine as the right of citizens to housing and which is backed by the state’s obligation to create conditions for the purchase of apartments in ownership or leasing. Meeting the population’s needs for housing is a basic characteristic of the quality of life of the population, an important condition for the reproduction of the country’s demographic potential. At the state level, for more than two decades, the issues of meeting the population’s need for housing have been raised. However, despite the development of the main directions for the development of housing provided by the Concept of the State Housing Policy, approved by the Decree of the Supreme Council of Ukraine of June 30, 1995 (No. 254/95-BP), there have been no noticeable positive changes in this direction. Every year the number of citizens who receive housing is reduced, being on the apartment account. The total number of citizens in need of better housing conditions significantly exceeds the number of “waiting lists”. Calculations based on sociological surveys carried out by the structures of UNESCO departments show that 72.7 % of Ukraine’s youth, or 2.5–2.8 million young families, live in poor housing conditions and wish to improve them. State preferential programs for providing young people with housing are ineffective and do not create for this category of the population the social prospects for acquiring more comfortable housing. To solve the housing problem, it is necessary to revise the strategic provisions for providing the population with living space. In addition to the programs of youth concessional lending, it is necessary to develop a socially oriented for the citizens market of mortgage lending for housing that is able to create competitive principles based on access to bank loans for a wide range of people. To realize the task of expanding credit resources in Ukraine, wholesale sources are needed, which implies the development of a secondary market for mortgage housing loans. At the present stage, taking into account the growing need of the population for housing, it is expedient to create a broad network of specialized mortgage banks that can provide affordable long-term loans to the population and reduce the risks of issuing mortgage-backed securities. The article shows the foreign practice of the functioning of such mortgage structures and substantiates the need for its distribution in Ukraine.

Authors and Affiliations

V. M. Novikov

Keywords

housing policy housing programs soft loans mortgages models of mortgage housing loans specialized mortgage banks construction and savings banks.

EP ID EP423107
DOI 10.15407/dse2018.03.086
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