The Czech government is preparing to implement a new housing support law with the aim of addressing the housing difficulties faced by approximately 150,000 people in the country. This proposed legislation seeks to provide a safety net for individuals struggling with housing issues.

Under the proposed system, landlords will be limited to charging rent up to the locally determined market rate for a maximum of 18 months. Should there be a shortfall in rent or expenses related to tenant-caused damage to the property, the government will step in to cover these costs. The government will also oversee tenant selection and eviction proceedings.

Minister for Regional Development Ivan Bartoš has indicated that the government expects landlords with multiple properties, who may have faced challenges with tenants in the past, to utilize this system. The Czech Republic currently has between 150,000 and 200,000 vacant apartments, and the government conservatively estimates that at least 2,000 of these units could be utilized for guaranteed housing under this initiative.

The law also incorporates provisions for housing counseling, social assistance, and other forms of support for individuals in need. The projected annual cost of the law is approximately CZK 1.5 billion. The government argues that failing to address the housing crisis could result in an annual cost of CZK 4.1 billion to the state.

Critics of the law contend that it offers only a partial solution to the country’s housing problem. Klára Dostálová, an opposition member of parliament, has called for more substantial investments in social housing and nonprofit housing cooperatives. The government maintains that these investments will be addressed separately, with plans to finance social housing construction through a combination of EU loans and public-private partnerships.

While the proposed law has generally received a favorable response from experts, some have cautioned that it may not fully address the underlying causes of the housing crisis. Nevertheless, it represents a significant stride in the government’s efforts to provide housing support to those in need in the Czech Republic.

Article by Prague Forum