We Can party says subsidised mortgages lead to higher property prices

NEWS 20.10.2020 15:46
Source: Marko Prpic/PIXSELL

The leader of the We Can political platform said on Tuesday that the government's scheme for subsidised mortgages had actually let to a rise in property prices which consequently made the purchase of flats for young families more difficult.

The head of this opposition parliamentary party, Tomislav Tomasevic, recalled that the fifth round of the call for applications for subsidised mortgages ended on Monday, and that the measure, which had been designed to help citizens under the age of 45 to the purchase their first home, was actually a failed measure.

He explained that the prices of properties had risen every time when the call for first-home buyers’ applications had been advertised. The government has done first-home buyers a disservice, he said.

Tomasevic added that Croatian National Bank Governor Boris Vujcic had recently admitted that the subsidised mortgages’ scheme had led to higher property prices.

Tomasevic recalled that in 2019, property price rise in the EU was about 4.3%, while in Croatia this rise was nine percent.