The Federal Ministry for Housing announces improved funding conditions for the programmes “Jung kauft Alt” (Young Buys Old, JkA) and “Wohneigentum für Familien” (Homeownership for Families, WEF). Felix Pakleppa, Chief Executive of the German Construction Confederation (ZDB), commented: “The Federal Ministry for Housing is continuing on the right path by improving the loan conditions of KfW funding programmes. Following the adjustments made in September to the programmes ‘Climate-Friendly New Construction’ (KFN) and ‘Climate-Friendly New Construction – Non-Residential Buildings’ (KNN), the next sensible steps are now being taken with ‘Jung kauft Alt’ and ‘Wohneigentum für Familien.’
The interest rate reduction of around 0.6 percentage points is an important signal to young families and private builders. What matters now is ensuring that these improvements remain stable and reliable — not just for the short term. Planning certainty is absolutely essential for building owners and craft enterprises.
Lowering the target standard in the ‘Jung kauft Alt’ programme from Efficiency House 70 EE to Efficiency House 85 EE is both appropriate and practical. The balance between effort and benefit is improved, making renovation projects more feasible for many families. Particularly helpful is the alternative provision for cases in which a building cannot fully achieve the target level for structural reasons. This lowers investment risk and can encourage more owners to purchase and renovate older buildings.
In the ‘Wohneigentum für Familien’ programme, the improved interest rate may also help more families realise their dream of owning a home. If financing has previously been the main obstacle, the more favourable interest rate could now make the difference. At the same time, the existing income limit of €90,000 — plus €10,000 for each additional child — remains a constraint that limits the number of potential applicants.
Overall, these developments are very positive and point clearly in the right direction. They would be significantly strengthened by implementing the EH55 programme agreed in the coalition agreement to reduce the backlog of unbuilt construction projects.
If funding policy becomes more permanent, predictable and broader in scope, it can provide noticeable stimulus for the construction economy — and open the door to homeownership for many more families.”
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