Current developments on the heating law: Financial experts advise calm and wait - keep an eye on real estate prices, loan interest rates and funding models.

Current developments on the heating law: Financial experts advise calm and wait - keep an eye on real estate prices, loan interest rates and funding models.

According to a report by www.br.de,
Rarely has a law been reported and discussed as much as the Heating Act. And although it is a done deal, not all the uncertainties have been resolved. This is particularly noticeable at the “Haus und Grund” association for real estate owners because up to 20 new registrations are currently being received every day. “There is a huge feeling of uncertainty,” reports the President, Rudolf Stürzer. Be it energy issues, questions about heat, tenancy law or new buildings.

1. Real estate prices are still falling
Real estate prices are currently falling almost everywhere - but that is no reason to panic, according to Stürzer's assessment. Because compared to how prices have risen in recent years, the decline is rather marginal. In addition, owners who are willing to sell are now more likely to be happy if they find any interested buyers at all.

2. Unsure how loan interest rates will develop
“The experts assess the situation very differently,” explains Stürzer. It could well be that loan interest rates will move down again in the new year, which in turn could persuade more people to buy. This increasing demand could stabilize purchase prices again.

3. Funding and subsidy models for renovations are still being negotiated
Anyone who builds a new house or renovates an old one usually hopes for government subsidies. The guidelines for this were only comprehensively renewed at the beginning of 2023. Now these changes are being put to the test again; there is much to suggest that a lot could change here in 2024. It is therefore advisable to wait and see.

4. Municipal heat planning is making progress
Some cities and municipalities could be ready with their heat planning as early as next year. This would mean that defective heating systems that use fossil fuels can no longer be repaired, but can either be replaced with a district heating connection or must be replaced with a heating system that uses at least 65 percent renewable energy.

More changes are coming
Although the Building Energy Act - GEG for short - dominates the concerns and questions of many homeowners, there are further changes that are coming in 2024. On the one hand, there are the so-called balcony power plants. The solar panels, which can be attached to balconies or terraces, are to be made into so-called privileged measures. Another point is the change in the Telecommunications Act. From July 1st, landlords can no longer pass on cable fees to operating costs.

EU rule on “compulsory renovations” comes into force in a weaker form
There is also good news for homeowners who could have been forced to renovate by an EU directive. The compromise stipulates that even if buildings that are already well insulated are raised to an even better standard, this will help ensure that the goals are achieved. However, a good half of the savings should be achieved by renovating buildings that have the worst energy efficiency.