Criticism of Hessengeld: Associations criticize payment in installments

Criticism of Hessengeld: Associations criticize payment in installments

The state government's decision to pay out the Hessengeld in the form of annual installments has met with mixed praise and criticism from various associations and the opposition. In particular, it is criticized that the funding is not needs-based and also supports people who may not need financial support. The Greens also complain that the funding only applies to property purchases from March 1st, which puts people who have previously invested at a disadvantage.

The financial burden on the state budget caused by the Hessengeld is described as significant, as savings may have to be made in other budget areas. Some parties such as the AfD emphasize the demand for a reduction in the property transfer tax on owner-occupied housing until the federal government implements appropriate measures.

Despite the criticism, the Hessengeld is viewed positively by some associations. Thomas Reimann, vice president of the Hessian business associations, sees this as an important step towards promoting home ownership outside of tight housing markets. However, he prefers a gradual reduction in property transfer tax for all property buyers.

The Haus & Grund association also proposes a reduction in the tax rate and emphasizes that the income from the property transfer tax makes up a comparatively small proportion of the state budget. An independent reduction in the tax rate by Hesse could be a positive signal for those interested in building and stimulate construction activity. Overall, the Hessengeld is seen as an important stimulus for housing construction in Hesse, but it is emphasized that further measures are necessary to increase construction activity.