News & Events in Belarus

Why Lukashenko attaches special importance to rental housing

Belarus began mass construction of rental homes in 2013. Over the years, approaches to its provision have changed several times, construction sometimes seriously lagged behind schedule. But today, rental housing has become an excellent option for those who cannot yet acquire their own living space and who do not want to pay an exorbitant rent. In the new episode of BelTA’s YouTube channel “After the Fact: Lukashenko’s Decisions” we will tell you about the housing policy in Belarus and why Aleksandr Lukashenko supports the rental housing program. Who is entitled to a rental home, how can a person get it and how can they lose it? The most important question: who and under what conditions can buy out rental housing?

When did Belarus begin to build rental housing

State rental housing is not a new thing for Belarus either. But first, let's understand the theory. Rental housing is a dwelling unit of the state housing stock that is leased to citizens on a leasehold basis under lease agreements. Belarus began to use this term after the presidential decree "On certain issues of the use of the state housing stock" was issued in 2011. However, the topic of rental housing was actively discussed in society even before the document came out. This is not surprising: such state support was supposed to become another tool for solving housing problems of Belarusians.

Minsk broke ground for the Magistr residential development  for scientific and creative intellectuals in May 2013. The head of state described it as a historic event as the country began a large-scale rental housing program.

"We are launching a promising national rental housing project. This seemingly mundane visit of the president to a construction site is a historic event as we are beginning a large-scale rental housing program. This is a new type of residential development for us. Other countries have long built such housing. This is a modern European way and a worthy alternative to the private housing market with its exorbitant prices,” Aleksandr Lukashenko noted.

How much rental housing does Belarus build

At a meeting on ways to improve the efficiency of the construction industry in November 2018, the president cited some figures: Belarus has built 745,000 m2 of rental housing. This accounts for about 2.5% of the total. This, frankly speaking, was quite low. For example, the share of rental housing in Germany exceeded 50%, and in Switzerland - 70%.

Meanwhile, as practice shows, this format of homes is in great demand in Belarus. For example, in Minsk, on average, about 100 applications are filed for a new apartment, and up to 50 - for a used home. Fees for state rental housing are much lower than market prices, which means that a family with an average income can afford it.

“There is a demand for such housing. In order to meet this demand, to help citizens solve their housing problem, the state annually increases the volume of rental housing construction. In 2019 only 113,000 square meters of rental housing was commissioned. Last year we built three times more – 316,000 square meters. This year we are looking at an even larger volume of 350,000 square meters," said Inna Pinkovskaya, head of the housing policy department at the Architecture and Construction  Ministry.

Why is the government interested in building rental homes?

It's not just about the welfare policy. Aleksandr Lukashenko stressed that the construction of rental housing will help attract young professionals to small towns and medium-sized cities of Belarus. In addition, this will make it possible to more effectively regulate the labor migration in general, to retain workers at enterprises. Therefore, the president instructed the government and local executive authorities to review housing construction programs and to significantly ramp up the construction of rental homes using funds of enterprises and organizations.

"We have already discussed this matter and we have such houses in Borovlyany, they are inexpensive, very convenient. We can build such accommodation for young doctors and teachers. Of course, this concerns primarily our regions, yet Minsk also has a shortage of these professionals. Still regions should be prioritized. This will help reduce staff turnover, because people will not have to go abroad to earn as little as 900 or 1,000 euros and then spend them on basic needs. The bottomline is: we will make this matter a priority going forward," the head of state said.

Of course, utmost attention goes to addressing the personnel issue in the countryside. Many years ago, a project called "presidential houses" was launched. It provided for building standardized neat cottages for rural dwellers. As far as rental houses are concerned, they will be built only in those regions where they are badly needed.

"We are constantly refining our housing programs, primarily in rural communities. According to analysts, one of the biggest reasons why people leave small towns is that they cannot buy a home there or at least get comfortable and neat rental housing. Today, we should give a new impetus to housing construction in rural areas, including single-family homes, and employer-sponsored construction of rental housing for their employees," Aleksandr Lukashenko said at the recent meeting with senior officials of the Council of Ministers.

How to get rental housing?

Basically, anyone who does not have accommodation can apply for rental housing. However, since the demand for rental apartments is bigger than the supply, applicants from large cities have to be put on waiting lists. Some applicants are entitled to priority access to such homes. These are judges and prosecutors, young professionals and students whose education was sponsored by their employers, military personnel, scientists and university teachers, as well as cultural workers.

To apply for rental housing, people need to file an application at the ‘one-stop-shop’ service. A respective district administration reviews the applications and distributes rental housing giving priority to people who are on the waiting list for better housing. A rental apartment can also be provided to persons who are not on this waiting list. Their applications are considered if some rental homes are available. By the way, executive authorities have the right to exempt citizens from paying a rent if an apartment requires repairs and a tenant does them at their own expense.

At present rental homes are built mainly with the use of budget transfers and rent payments. Under the new presidential decree, legal entities will be able to participate in such construction projects starting from 2025. They will have the right for subsidies to pay off part of the interest rate on bank loans for the construction or purchase of rental housing for their employees. Enterprises will independently determine the procedure and conditions for providing rental apartments and the amount of payment for such housing. At least 20% of such housing will be provided to young specialists.

“Enterprises will be able to retain their employees, including young specialists, for a long period of time,” Inna Pinkovskaya said. “In 2025, we plan to increase the construction of rental housing compared to the current period. Thanks to the taken measures, at least 30,000 square meters of rental housing will be additionally built through the funds of the organizations.”

For example, the management of the Minsk Tractor Plant says that a person who comes to the enterprise and immediately gets a roof over his head, shows better performance at work and has confidence in the future.

“Eight years ago we had 500 people on the corporate waiting list. Since then the number of people in need of better housing has decreased almost ten times. For the past two years we have had no single people on the waiting list. All of them receive housing within a month since getting employed. As of 1 September only 13 out of 55 workers with families have not yet received an offer from us within six months since they were placed on the waiting list,” MTZ Deputy Director General Vladimir Piskizhev said. “The provision of accommodation stimulates new workers to perform better, makes them feel more secure. In addition to eight dormitories we have built 76 rental apartments for our employees last year.”

Can rental housing be privatized?

Is it possible to buy out a rental home? The sale of rental housing is not prohibited. For example, there are cases when unoccupied residential houses and apartments in rural communities have been sold at auctions for a symbolic price. This, however, requires certain conditions: such housing must stay unclaimed for six consecutive months or more or the local authorities have refused to make it a municipal property. Of course, such cases are rather an exception to the rule.

Today the military have an opportunity to get rental housing on a free-of-charge basis. This requires 25 years of service. With 20 years of service under the belt, the military have the right to get rental housing at its estimated value, with an opportunity to pay in installments for up to 15 years. You may wonder why the military have such privileges. Everything is simple. Military service is fraught with a risk to life. People who choose the profession to defend the Motherland should be confident not only in their future but also in the future of their families, Aleksandr Lukashenko said.

“Military personnel, like civil servants, to some extent doctors, teachers, are public sector employees who perform the most important functions for the country. They are entitled to the state support. Such careers are chosen not because of high salaries, but because of the call of the heart by people who are guided by high moral principles and patriotism (at least, that is what we assume). It is impossible for young specialists who have chosen this career path to save up for their own home. Provision of housing for state employees and especially people who defend Belarus, especially now, will always be a priority of the state housing policy. I have repeatedly emphasized that people with many children and people in uniform are our priorities, even super-priorities. People should be given a firm confidence in the future,” the president said at the meeting in 2022.

Providing people with housing has always been a priority for the state, because a roof over one’s head is a fundamental need. This is especially true for a young family. It is its confidence in the future. State support, of course, has its - primarily financial - limits. The authorities always look for new approaches and mechanisms to help people address the housing issue. They always find the best solutions.