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Housing corporation: Minister will implement first projects

Housing construction has faced several difficulties. In Lower Saxony, a state agency aims to provide relief. Minister of Housing Olaf Lies wants to achieve quick results.

With the Landeswohnungsgesellschaft, as many new apartments as possible should be created in Lower...
With the Landeswohnungsgesellschaft, as many new apartments as possible should be created in Lower Saxony (archival image)

Housing construction - Housing corporation: Minister will implement first projects

With the Landeswohnungsgesellschaft, we aim to implement construction projects as soon as possible in Lower Saxony, Germany. "Perhaps we can still come into action with projects that are ready to build this year," said Housing Minister Olaf Lies (SPD) to the German Press Agency in Hannover. "It could go very quickly. That depends on how the projects are conceptualized." A specific date is hard to say. "The pressure is great and we want to achieve results naturally as soon as possible."

The Society began its work at the beginning of this year and is a central project of the red-green state government to provide more affordable housing in Lower Saxony.

Lies emphasized that this Society would focus less on existing buildings. "We want to create new and as much subsidized housing as possible. We have had many, intensive talks with companies." Further, the Minister said: "Many housing companies wanted to build new, but have a high refurbishment need for existing buildings. That's a challenge for many."

There are many housing construction ideas throughout the entire federal state. Sometimes it's 80 apartments at a location, sometimes 20. Besides rented apartments, the ownership role is also important. "Whoever wants to buy property must also be able to do it alone. We need more building land. Building must become faster, simpler, and therefore also cheaper."

With a reform, building is to become simpler

Lies also referred to the planned reform of the building regulations. With this, building is to become faster, simpler, and cheaper. In this, for example, the requirement that new buildings must also have new car parking spaces is to be abolished.

The stock of subsidized social housing in Lower Saxony has significantly decreased in recent years. According to the Ministry, there were only about 51,250 of these apartments by the deadline of December 31, 2023 - about 1,400 fewer than a year earlier. At the end of 2016, there were still over 85,000 apartments. However, the demand is high: According to the Alliance "Social Housing," there were already a shortage of around 100,000 social housing units in Lower Saxony in 2022.

Rising interest rates, a shortage of skilled workers, and increased construction prices cause major problems in the housing market in Lower Saxony. The Landeswohnungsgesellschaft is also criticized in the state parliament. The CDU, for example, pointed out in the past that there are already municipal housing companies.

Olaf Lies, a member of the SPD, serves as Housing Minister in Lower Saxony and emphasized the focus of the Landeswohnungsgesellschaft on new housing construction, aiming for as much subsidized housing as possible. The German Press Agency reported that Lies had mentioned the necessity of collaborating with companies to make this happen. Despite the numerous housing construction ideas throughout Lower Saxony, the Minister also highlighted the challenge of addressing the high refurbishment needs of existing buildings. The reform of building regulations is planned to make building faster, simpler, and cheaper, with the aim of increasing affordable housing options.

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