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THE EFFECT OF REGULATORY MEASURES ON THE SOCIAL HOUSING COSTS

V. Zathurecky

Abstract

The paper discusses with the issue of the growth of construction activities in the housing construction market and the growth of property prices on the example of the City of Brno following the abolition of regulated rent for rental housing in the Czech Republic. In the Czech Republic, real estate prices have increased several time over the past 25 years, and due to the abolition of state rent regulation, this has led to a decrease in market rents, yet hundreds of thousands of households that have regulated rent pay for housing significantly more. Regulatory measures do not only concern the determination of rental rates. Changing socioeconomic behavior in society, rising incomes, competitive banking sector and low interest rates and other factors increase the demand for quality housing and its growth. On the other hand, we register a significant effort for regulation by the state, municipal area, monument, building or other authorities and organizations, thus delaying the supply of apartment buildings or possibly increasing them. Methodologically attention was paid to the results obtained from the analysis of secondary data carried out by own research in the Czech environment with an emphasis on the city of Brno. A survey was also carried out to support state or municipal authorities in the Czech Republic to support the construction of apartment buildings and housing units. The results of the survey will be published in professional journals to reduce unnecessary regulation in the sector under examination

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