This was stated by the head of the Verkhovna Rada Committee on State Governance, Local Self-Government, Regional Development, and Urban Planning, the leader of the "Servant of the People" party, Olena Shuliak, as reported by RBK-Ukraine referencing "Economic Truth." This is also noted by Kontrakty.UA.
The best option for Ukraine would include providing incentives for investors who build affordable housing and implementing state subsidies for rental costs.
According to her, one of the long-standing unresolved issues in the housing sector is the shadow rental market. During public consultations on housing policy, participants repeatedly highlighted that renting poses risks for both tenants and landlords. Unregulated prices, discriminatory and even bizarre requirements for tenants mentioned in advertisements, the risk of falling victim to fraud, sudden rent increases, or even eviction are all concerns.
“Internally displaced persons are particularly vulnerable, with 56% renting housing compared to 14% among all Ukrainians. Landlords also need protection, particularly the ability to claim compensation for property damage,” Shuliak explained.
To ensure the rights of all parties are protected, she believes their relationships should be governed by official contracts, and fair taxes should be levied on rental income, which can be directed towards the development of subsidized programs and social housing. However, international experience shows that the state should avoid implementing stringent regulations on the market.
"For instance, Argentina's experience demonstrates that this will have negative consequences for the market. Strict contract restrictions—such as a minimum term of three years, bans on rent increases and currency transactions—combined with inflation led to a disaster. In the capital, the number of affordable apartments halved, one in seven apartments stood empty, and prices rose to the point where staying in a hotel became a more economical option. Only the removal of restrictions and complete freedom of contract allows the market to gradually return to normal," noted Olena Shuliak.
That is why, she emphasized, among the steps to improve the rental market, experts and the public propose providing incentives for investors building affordable housing, instituting state rental subsidies, especially for families of fallen soldiers, and increasing the amount of housing for social rent.
Shuliak also reported that in EU countries, social housing makes up an average of 25% of the entire housing stock, while in Ukraine, it is only 1.5%. We lack the tools to ensure affordable housing that are common worldwide. One of these is rent-to-own, where a family lives in a dwelling and can gradually save money to purchase it. This approach is popular in the UK, where a special government program supports first-time homebuyers and specific categories such as young families.
Social housing rental programs, often with the option for subsequent privatization, exist in Germany, Austria, and Sweden. They are funded through state subsidies, favorable loans, or special funds.
Additionally, inclusive zoning is applied in most U.S. states and the UK, which requires developers to allocate a certain percentage of housing in new constructions for social rental housing. Another tool that Ukraine can adopt is leasing housing, as practiced in France and Poland. We are already studying this experience for potential adaptation in Ukraine,” concluded the head of the urban planning committee.