In this year’s Q1 survey, the demand for the government subsidy receivable for home renovations only changed within the margin of error compared to that of last year’s Q4 – results of a joint survey conducted by the Hungarian Economic Research Co (GKI) and Masterplast suggest. According to survey results in February, 8% of households were certain, whereas 13% of them were likely to use the benefits offered by the programme before the end of 2022. The two most popular intended uses of the money were internal and bathroom renovations, however, many wanted to upgrade their heating systems or roof structures. There is a rapidly growing demand for solar panel installations.
Since January 2020, GKI residential surveys aiming to reveal home renovation and improvement plans, intentions and prospects have been sponsored by Masterplast Nyrt. In this survey, the sample of 1000 people is representative as regards characteristics like sex, age, place of residence and qualification.
The Home Renovation Programme provides government subsidy – up to 3 million HUF – for families with children living in Hungary. The submission deadline for the financial report confirming the performed renovation work is 31 December 2022. The programme captured the imagination of many; in Q1 last year, more than 7% of households indicated to be certain, whereas 17% of them said that they were likely to seize the opportunity. In Q2, though, possibly due to clarifying the terms and conditions of participation, the interest in the programme significantly dropped. But after that, the demand rose again.
In Q1 this year, 8% of the surveyed households reported to be certain and a further 13% were likely to apply for the government subsidy for their home renovation and upgrade work before the end of 2022. The current survey results, compared to the results a year before, changed within a margin of error, which means that the interest in participating in the programme is still significant.
Applying for the government subsidy is the most popular among owners of detached houses – 10% of them are certain and 15% are likely to do so. Residents of apartment buildings have less ambitious plans, as only 5% of them are certain and 11% are likely to apply for the subsidy.
The interest in the government subsidy is the highest among the middle generation; 13% and 19% of people aged between 30 and 50 said they are certain or likely to apply for aid. Among the under-30 population, the demand is slightly over the average, about 11 and 14% respectively. Demand drops among people aged over 50. The highest activity – just like in previous surveys – is expected in the Central Transdanubian region. Demand is also above average in the regions of Western Transdanubia and Northern Hungary. A municipal slope can be observed, too: residents of the capital city are the least, while people of municipals are the most interested in the programme.
Two third of those thinking about applying for the subsidy want to use the maximum amount receivable, whereas one in four people would apply for at least 2 million HUF. Based on these, the average claim amount is 2.1 million HUF, which, if added to self-contribution, means a project value of 4.2 million HUF. This amount is about 10% higher than that one of last year’s Q4 survey. The planned amount receivable has been growing parallelly with the increase in the income available to households. On average, families belonging to the two bottom deciles applied for a subsidy of 1.3 million HUF, while families of the two upmost deciles received 2.3 million HUF.
The most popular intended use of the money continues to be internal renovations (such as replacement or renovation of internal walls, suspended ceilings, and their painting and decoration). This option was indicated by 39% of the survey participants. One in three people wants to have their bathrooms upgraded. Heating system modernisation and roof renovation are also popular aims as one in four survey participants would like to have such jobs done. Every fourth participant said that they were interested in solar panels or system installations. A year ago, one in seven people said that. This increase might be due to the fact that, apart from the Home Renovation Programme, other funds are also available for this purpose. 20% of participants were open to external door or window replacements, whereas a year ago it was 25%. Installation or replacement of air conditioning equipment and thermal insulation works were just as popular.
Masterplast Nyrt.
Founded in 1997, the Masterplast group is one of the leading building material producer and distributor companies in the Central Eastern European region. The company group owns subsidiaries in 10 countries, and sells products in a further 30 countries. The company is registered in the premium category on the Budapest Stock Exchange, and had revenue of 145,2 million euros in 2023.