ABSTRACT
Hungary has made great strides in housing provision since the end of the war, during a time when war damage and migration resulting from rapid industrialisation created enormous difficulties and shortages. Initially new housing was not of high quality, but later quality improved, as did the amount of demolition of old stock. The first big surge in housing construction came during the 1960s with the development of industrialised methods of building. This was followed by a vast increase in mortgage funds for owner occupation in the second acceleration in the 1970s, during which period shortages were reduced considerably, allowing very progressive allocation and subsidy policies to be introduced in 1971 for the needy. These policies were partially withdrawn in 1983 as a result of the country’s economic difficulties, since when state funding for housing has been reduced, and since when the private sector has been encouraged. In January 1989 the mortgage rate for new mortgagees was raised to 18 per cent; there were also considerable rent rises.
