Interest in the Home Renovation Scheme is constant

The two most popular areas for renovation are the interiors and bathrooms, while upgrades of heating systems took third place. Exchanging doors and windows came fourth, and installation of airconditioning is fifth. 

GKI organizes surveys every quarter to assess the population’s intent, prospects, and plans on home improvements. Masterplast Nyrt. has supported the survey since January 2020. This latest evaluation is based on a representative sample of 1000 people determined by sex, age, residence, and education. 

Within the Home Renovation Program framework, families with children living in Hungary can apply for benefits up to 3 million forints. The deadline for the application is 31st of December 2022, meaning only one year left to renovate and send in the paperwork. The scheme raised a significant interest, and in the first quarter, 7% of households said they were certain, and 17% stated they were likely to participate. During the second quarter, interest decreased slightly and rose again in the third quarter. 

In Q4, 8% of the respondent households suggested that they were certain to take advantage of the renovation and home improvement benefits until the end of 2022. Further 12% were likely to apply. (Based on our experience, this type of response shows some consideration and pondering over the matter.) Many things can influence a household’s plans and intents, like the cost of renovations (loan opportunities, building works, etc.), how well-informed they are about the conditions and restrictions of the scheme, and the pandemic can have significant effects as well. According to the survey, Q4 showed a slight increase in interest towards the Home Renovation Scheme compared to Q3. These figures are behind compared to the beginning of the year. The circle of households with certainty widened since last quarter, and the circle of households with inclination to use the scheme has not changed. Let’s look at the proportions of Q4 and consider it for all households. The circle of households certain to apply for the funds is 330,000, while the circle of households with an inclination to renovate is 270,000 (where at least half of these projects will transpire). 

Applying for the funds is more prevalent among house owners as 10% are certain, and 13% consider themselves potential applicants. People living in non-panel condominiums  have relatively modest plans: among the residents of prefrabricated block of flats and brick-built condominiums, 5-5% are certain to apply for the funds. Those who are likely to claim the subsidy living in prefabricated blocks of flats is 11%, and those living in non-panel condominiums is 9%. 

Interest towards state subsidy decreases with age. People under the age of 30 are more prone to claim the benefits, and the proportion between being certain and more likely to claim is 15-15%. The older the age group, the less the interest is. From the regions of Hungary, it is the Central-Transdanubian region which is more active than the others and interest is above average in the Northern Plains and Northern Hungary region. 

A quarter of those planning to apply for the scheme wish to take advantage of the total amount but at least 2 million forints. Over one-third would be satisfied with 1 million forints. The average amount to be claimed comes to 1,9 million forints, to which adding own contributions adds up to an average of 3,8 million forints per project. This amount has significantly decreased compared to Q3.  

The two most popular reasons for renovation are interiors and bathroom renovations (the former means changing and/or painting the cover of walls, floors, and ceilings). One-third of respondents identified these types of works. The popularity of heating system upgrade is not far from the above, and this is the sector where the most noticeable increase occurred compared to the previous quarter. Apart from the Home Renovation Scheme, there are other tenders out there to support these efforts. 

One-quarter of respondents (but every third respondent living in blocks of flats) consider changing doors and windows. Installation or upgrade of airconditioning units is also top-rated. Every fifth respondent would like heat installation, roof upgrade, solar panels,  or solar panel system works done. The popularity of the latter has increased since the last survey.