The most critical element of the Hungarian housing crisis is that the substance of local governmental flats stays below 2 percent. In order to solve housing crisis, a new planning is needed that doesn’t only rely on the narrow substance of local governmental flats.

Since 2016 we have been working on to show that private flats, that are currently disused, can be involved and organized by the property management and let out as rental apartments to the indigent at reduced price. We provide guarantee for the conservation and maintenance of the flat and are ready to negotiate about restoration if needed.

Social housing agency

Housing is a public political issue. In Western-Europe a larger part of the substance of the building stock (nearly a quarter or fifth) is publicly operated. These flats are available for the indigent as rental apartments: not only those getting out of homelessness, but terminally ill people or young couples who are looking for their first flat. They can get access to these apartments at a reduced price compared to the market and it can function as a positive balance sheet of the system. Compared to this in Hungary, if a family can’t afford a rental apartment at usual market rate, there is no such a solution in the system where their housing costs could get financially supported by 10 000 HUF or more, so they can avoid ending up on the street.

One of the possible forms of the solution is social housing agency. This concept is not only popular in Western-Europe, but the housing of millions has been arranged by flats, operated by associations in countries with lower economic performance, like in Latin-Amerika. In many places owners are encouraged to let out their properties by being offered one-time allowance, financial support for restoration or tax benefit. Turning to housing agencies is especially worth for owners of flats with lower value or hard to let out or for those who live abroad and have difficulties with managing the rental process. So instead of letting their flats stay empty they can expect a certain amount of income from it and in the same time by cooperating they support the efforts to moderate housing crisis. The lessor won’t have any troubles with maintenance, operation and renting out. Furthermore, there are certain guarantee funds in case of temporary financial difficulties on the renter’s side, like paying rent.

The housing agency summarizes the operation of renting out private flats based on organizational, cooperative, entrepreneurial, nonprofit or business purposes. Beside our own minimal substance of rental flats, we are planning to involve other private owners in our system in order to be able to rent out their flats but with guarantees, at a lower rate, enabling housing access for those who pay social-based rent.

Beside the managing the operation, the members of the housing agency play an intermediary role between owners and renters and their main purpose is to reduce risk on both sides.