Bauexperte
2016-11-16 00:14:36
- #1
The Bündnis 90/Die Grünen parliamentary group has submitted a minor inquiry to the Federal Government regarding the problems with the implementation of the Wohnimmobilienkreditrichtlinie (WIKR). Since the law came into effect in March 2016, among others, savings banks have complained that the residential mortgage lending business has declined significantly. The Federal Government stated that it intends to clarify the issues and ensure legal certainty.
In their minor inquiry, the parliamentary group refers to reports according to which savings banks pledged around 8.9 percent fewer residential construction loans to private customers in the first half of 2016 than in the previous year. The Greens want to know, among other things, whether the government has more detailed insights into the problems with the implementation of the EU credit directive and which population groups are particularly affected.
Furthermore, the question was posed as to whether the government considers more legal certainty through clarified regulations to be necessary. Meanwhile, Justice Minister Heiko Maas said in an interview with the "Rheinische Post" that he is in talks with the Federal Ministry of Finance to reduce “possible legal uncertainties.”
Is the government planning "clearer regulations"?
In the meantime, the ministries have, as presented in the government's response, met with financiers to clarify further questions. They have entered into a dialogue with the German Credit Industry, the Association of Private Building Societies, and the Federation of Consumer Organizations (vzbv) to clarify the extent to which the described problems are accurate and the extent to which loan rejections based on the Wohnimmobilienkreditrichtlinie or the law implementing the Wohnimmobilienkreditrichtlinie from 11.3.2016 have occurred.
The Federal Government had asked those involved to submit meaningful data by mid-October 2016, which has not yet happened.
“Parts of the credit industry see no problems with the application of the new rules,”
the government also said, "while other institutions are uncertain about the interpretation and therefore act restrictively."
W&W complains about the slump in the residential mortgage business
The statement that fewer loans are issued due to the new EU credit directive, as supported among others by a survey of the Federal Association of Independent Housing Companies (BFW), was recently reiterated by the financial group Wüstenrot & Württembergische (W&W): The decline in construction financing from 4.3 to four billion euros since March of this year is also attributed to the Wohnimmobilienkreditrichtlinie, the company announced on November 11 when presenting the figures.
Demand for real estate remains unbroken, as Wüstenrot & Württembergische reported in Stuttgart, but demand for building savings contracts has significantly declined in the past nine months. While there was still a plus of 4.8 percent in the first half of the year, gross new business has now only grown by 1.2 percent to 10.4 billion euros compared to the previous year period.
The tightening of lending regulations that has been in effect since March is politically debated. Baden-Württemberg, Hesse, and Bavaria have advocated in the Bundesrat for a change. They argue that the new Wohnimmobilienkreditrichtlinie particularly complicates the financing of construction projects for young families and retirees.
80 percent of BFW companies see worse sales due to EU directive
Loan rejections also occurred before the directive; however, according to the BFW, it is particularly striking that 30 percent of the surveyed member companies indicate that the proportion of young and older prospective buyers purchasing has decreased since the regulation came into force in March due to an unapproved construction loan.
The fact that older property buyers are disadvantaged was recently criticized by the Real Estate Association IVD as well – there, fears of age discrimination even violating the Basic Law have been expressed.
Overall, 80 percent of the BFW-surveyed real estate companies perceive the effects of the tightened Wohnimmobilienkreditrichtlinie on sales. Forty percent of BFW companies report last-minute cancellations by consumers due to a negative credit decision shortly before contract conclusion.
The middle purchase price segment is particularly affected, report 70 percent of surveyed companies. Around 20 percent speak of an additional decline in the low-price segment. Due to the changed framework conditions, the sale of developed projects also takes significantly longer, according to the experience of 61 percent of surveyed companies.
Bundesbank contradicts negative impact of EU directive
The savings banks also acknowledged that the EU directive has made their business with residential construction loans more difficult: The decline amounted to around 8.9 percent in the first half of 2016, said Michael Breuer, president of the Rhineland Savings Banks and Giro Association (RSGV), to the "Rheinische Post."
The Deutsche Bundesbank, on the other hand, sees no slump in construction financing, reports the "Frankfurter Allgemeine Zeitung."
Accordingly, even more loans for residential property have been granted, and the growth rate has continued to increase.
However, the British banking group HSBC expressed concerns and warned that the new credit directive could not only curb demand for real estate in Germany but could abruptly stop the price increase.
Source: 11.11.2016 | Law | Haufe Immobilienwirtschaft
Rhineland regards
In their minor inquiry, the parliamentary group refers to reports according to which savings banks pledged around 8.9 percent fewer residential construction loans to private customers in the first half of 2016 than in the previous year. The Greens want to know, among other things, whether the government has more detailed insights into the problems with the implementation of the EU credit directive and which population groups are particularly affected.
Furthermore, the question was posed as to whether the government considers more legal certainty through clarified regulations to be necessary. Meanwhile, Justice Minister Heiko Maas said in an interview with the "Rheinische Post" that he is in talks with the Federal Ministry of Finance to reduce “possible legal uncertainties.”
Is the government planning "clearer regulations"?
In the meantime, the ministries have, as presented in the government's response, met with financiers to clarify further questions. They have entered into a dialogue with the German Credit Industry, the Association of Private Building Societies, and the Federation of Consumer Organizations (vzbv) to clarify the extent to which the described problems are accurate and the extent to which loan rejections based on the Wohnimmobilienkreditrichtlinie or the law implementing the Wohnimmobilienkreditrichtlinie from 11.3.2016 have occurred.
The Federal Government had asked those involved to submit meaningful data by mid-October 2016, which has not yet happened.
“Parts of the credit industry see no problems with the application of the new rules,”
the government also said, "while other institutions are uncertain about the interpretation and therefore act restrictively."
W&W complains about the slump in the residential mortgage business
The statement that fewer loans are issued due to the new EU credit directive, as supported among others by a survey of the Federal Association of Independent Housing Companies (BFW), was recently reiterated by the financial group Wüstenrot & Württembergische (W&W): The decline in construction financing from 4.3 to four billion euros since March of this year is also attributed to the Wohnimmobilienkreditrichtlinie, the company announced on November 11 when presenting the figures.
Demand for real estate remains unbroken, as Wüstenrot & Württembergische reported in Stuttgart, but demand for building savings contracts has significantly declined in the past nine months. While there was still a plus of 4.8 percent in the first half of the year, gross new business has now only grown by 1.2 percent to 10.4 billion euros compared to the previous year period.
The tightening of lending regulations that has been in effect since March is politically debated. Baden-Württemberg, Hesse, and Bavaria have advocated in the Bundesrat for a change. They argue that the new Wohnimmobilienkreditrichtlinie particularly complicates the financing of construction projects for young families and retirees.
80 percent of BFW companies see worse sales due to EU directive
Loan rejections also occurred before the directive; however, according to the BFW, it is particularly striking that 30 percent of the surveyed member companies indicate that the proportion of young and older prospective buyers purchasing has decreased since the regulation came into force in March due to an unapproved construction loan.
The fact that older property buyers are disadvantaged was recently criticized by the Real Estate Association IVD as well – there, fears of age discrimination even violating the Basic Law have been expressed.
Overall, 80 percent of the BFW-surveyed real estate companies perceive the effects of the tightened Wohnimmobilienkreditrichtlinie on sales. Forty percent of BFW companies report last-minute cancellations by consumers due to a negative credit decision shortly before contract conclusion.
The middle purchase price segment is particularly affected, report 70 percent of surveyed companies. Around 20 percent speak of an additional decline in the low-price segment. Due to the changed framework conditions, the sale of developed projects also takes significantly longer, according to the experience of 61 percent of surveyed companies.
Bundesbank contradicts negative impact of EU directive
The savings banks also acknowledged that the EU directive has made their business with residential construction loans more difficult: The decline amounted to around 8.9 percent in the first half of 2016, said Michael Breuer, president of the Rhineland Savings Banks and Giro Association (RSGV), to the "Rheinische Post."
The Deutsche Bundesbank, on the other hand, sees no slump in construction financing, reports the "Frankfurter Allgemeine Zeitung."
Accordingly, even more loans for residential property have been granted, and the growth rate has continued to increase.
However, the British banking group HSBC expressed concerns and warned that the new credit directive could not only curb demand for real estate in Germany but could abruptly stop the price increase.
Source: 11.11.2016 | Law | Haufe Immobilienwirtschaft
Rhineland regards