The queue for "MDM" subsidies for property in Katowice

Thanks to an amendment, the government's "Mieszkanie dla młodych" (Flat for the Young) programme now covers not only primary-market properties but also secondary-market ones. It has aroused enormous interest among buyers, developers and private owners.

In addition, it is expected that the pool of money earmarked for MdM subsidies may run out as early as April 2016… Hence the question: should those interested in a property subsidy under the "Mieszkanie dla młodych" programme in Katowice submit their application as soon as possible? Is there really a long queue for MdM subsidies?

Subsidies under the "Mieszkanie dla młodych" programme in Katowice

The first quarter of 2016 brought no significant changes. Compared with the last quarter of 2015, MdM subsidies in Katowice remain at a similar level. On the primary market the limits apply to flats whose maximum price for 1 square metre is 4794.90 PLN, and on the secondary market 3923.10 PLN.

It is worth noting that the choice of MdM-eligible flats is becoming much wider. Both developers and private owners are deliberately lowering their prices to enable buyers to receive funding from the "Mieszkanie dla młodych" programme. As a result both sides stand to gain a lot: sellers close transactions faster, and buyers receive a subsidy.

The 2015 amendment to MdM affected several areas. As I mentioned earlier, the act was extended to the secondary market. In addition, the government programme abolished the age limit for large families and increased the chances of obtaining a subsidy for people who lack creditworthiness. Recently the minimum down payment (wkład własny) threshold has also changed, from 10% to 15% of the total value of the flat.

The MdM forecast for the Katowice market

It should be borne in mind that the budget earmarked for 2016 keeps shrinking. In January it was only 371 million PLN, whereas the pool allocated for this year amounted to 730 million PLN. Therefore people who plan to take part in the MdM programme in 2016 should submit their application as soon as possible.

This is not the end of the government programme, however. For 2017, a pool of 711 million PLN for borrowers has already been allocated under the MdM programme. Hence it is highly likely that those interested in the programme will be able to submit applications for the following year in Q3 2016.