Changes in the regulations of household utility costs may boost home modernising trends

The results of a joint survey by the Hungarian Economic Research Co (GKI) and Masterplast show that the financial support provided by the Home Renovation Programme is still popular, as half of the families planning to renovate would like to apply for state subsidies.

GKI conducts a quarterly survey to reveal residential home renovation and improvement plans, intentions and prospects. Since January 2020, the survey has been sponsored by Masterplast Nyrt. In this – July 2022 – survey, the sample of 1000 people is representative as regards characteristics like sex, age, place of residence and qualification.

 Between the beginning of 2018 and the first quarter of this year, there was clearly an increasing tendency in the number of households willing to spend a larger amount of money on their homes. It was also supported by state subsidies and favourable financing conditions. At the same time, the results of this year’s Q2 and Q3 surveys indicate a slight decrease in home renovation and improvement plans. Based on survey data from July 2022, 4% of households are certain, whereas 15.7% are likely to spend a larger sum on their homes next year. If all these plans are implemented, then – using survey results for conclusions about the whole population of Hungary – nearly 800 thousand homes will undergo minor or major works next year. The current figure is 100 thousand higher than last year’s data, demonstrating a greater willingness to renovate. Since this survey was conducted before the new household bill regulations were announced, the demand for activities improving energy efficiency will likely grow shortly.

As before, the residents of detached houses are the most willing to renovate or modernise their homes. The residents of apartment buildings have somewhat more modest plans. People living in smaller towns or municipals tend to be more active in this respect (as one in three is planning to renovate) than city dwellers (only one in six households is thinking about it). As regards generations, the youngest families (that is, families with a head of household under the age of 31) seemed to plan actively (with a rate of nearly 40%). In the case of older generations, families had more and more moderate plans parallelly with the increase in the age of the head of the household. 

Nearly half of the families (47%) planning renovations or modernisation are considering applying for state subsidies under the Home Renovation Programme. (According to current legislation, this is possible before the end of this year.) The rate of those hoping to obtain subsidies is exceptionally high in municipalities (68%) and among youngsters under the age of 31 (66%). Those who expect to receive a subsidy would like to get an average amount of 2.2 million HUF, which, added to their self-contribution, would result in a total of 4.4 million HUF available. 

The most popular intended use of the money is for bathroom renovation, as indicated by 30% of the participants. Many would want to perform internal renovation works or modernise their heating systems (27 and 27% both). One in five participants is planning to change external doors and windows, while one in six participants wants to have thermal insulation or a solar panel system installed.