152,000 households would "most likely" take out Home Start loan in six months - GKI

Assuming that only those who answered 'very likely' take up the loan,

around 152,000 households could join the programme over the next six months.

For comparison, the total number of housing transactions last year was 127,000.

Who are planning to take out the loan?

A higher proportion of people living in the capital city plan to take out a loan (12%) than those living in other parts of the country (6-8%). There are also stark differences in terms of occupation:

Entrepreneurs (19%) are most likely to take advantage of the subsidised loan, but middle and senior managers also make up a significant proportion of would-be applicants (15%).

Although the programme is for first-time homebuyers, these two employment categories are not usually associated with young people starting their careers. 14% of office workers and white-collar employees intend to take out a Home Start loan, compared to just 6% of blue-collar workers.

The programme is particularly popular among younger generations, though many middle-aged respondents also intend to take advantage of the state subsidy.

Among 18- to 29-year-olds, 5% answered “very likely” and a further 10% answered “somewhat likely”.

However, a striking proportion of this age group remain undecided (30%). This clearly shows that Home Start has placed many young adults in a new situation: many of them had never previously considered buying a home, but now they are present on the market - browsing.

Those aged 30-39 are planning to partake in the Home Start scheme at almost the same rate (14%) as younger people, while the proportion of positive responses is lower among those aged 40-59 (6-8%). The likely participation rate among those over aged 60 and over is negligible, partly due to difficulties with credit assessment.

In summary, interest in the Home Start programme is widespread, particularly among younger age groups, Budapest residents, and entrepreneurs and managers. Over the next six months, up to 152,000 households could choose to take advantage of the preferential loan, which could substantially boost housing market activity. The large-scale entry of undecided young buyers could generate a new wave of demand, which would have significant implications for property prices and the programme's fiscal impact, the GKI concluded.

Cover image (for illustration purposes only): Getty Images