Central Bank opposes artificial maintenance of home affordability 14:44

The “normal” correction of housing prices in Russia will increase its affordability for citizens. This was expressed by Alexander Danilov, Director of the Banking Regulation Department and Analyst of the Central Bank of Russia, at the Mortgage Lending in Russia forum, delivery interfax.

“What kind of accessibility (housing. – IF) are we talking about? In such a case, it is clear that a preferential program was first invented, but it is no longer sufficient. Then here are these plans with near zero odds. And then what? (…) The potential is exhausted, it’s kind of artificial maintenance, so we’re in favor of a longer-term stable date. (…) If there is a normal fix (the price – IF), a reflection of the existing reality, (…) then this is for normal people, ordinary people who do not want to participate in this scheme, just buy an apartment at normal rates, ” said Danilov .

According to the head of the Central Bank department, in order to save for the purchase of an apartment in the new buildings market, you need to save money – the average annual salary, excluding daily expenses – eight years. At the end of 2019, such a target would have taken six years.

Danilov added that at the moment the primary market is accumulating risks that could lead to a mortgage crisis. As one of the measures to combat this, in relation to the programs of developers, the Central Bank will introduce an increased reserve for such loans. We are talking about loans given at rates far below the market.

Source: Gazeta


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