A leading representative of the Association of Private Building and Savings Banks has called for substantial financial support from the federal government to enable more families to build a home of their own. The official, Bernd Hertweck, pointed out that the government had previously provided a significant amount of funding for the construction of homes, particularly during the era of the Baukindergeld, a program that offered a subsidy of 1,200 euros per child for the construction or purchase of a self-owned home.
Between 2018 and 2022, the program, which was open to families with children, provided a total of 12,000 euros in subsidies per child, with more than 175,000 families benefiting from the scheme on average. Hertweck emphasized that a similar level of support is now needed to boost the construction industry and help more families achieve homeownership.
The official also suggested that the federal government and the states should consider abolishing the real estate transfer tax, which he believes would have a positive impact on the economy and the construction industry. According to Hertweck, the current situation, in which the real estate transfer tax is still in place, is actually costing the states money, as the lack of construction activity is resulting in a decline in the tax revenue. He argued that if the tax were to be abolished for the first-time purchase of a self-owned home, the construction industry would likely experience a resurgence, leading to increased tax revenue in the long run.