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Prefabricated building industry demands fair property tax for owner-occupiers

Benefit home ownership and mobilising building land

Federal Association of German Prefabricated Construction (BDF)

Around 100,000 single-family homes are built in Germany each year and are mostly occupied by the owners themselves. The Bundesverband Deutscher Fertigbau (Federal Association of German Prefabricated Construction – BDF) demands a fair land tax in the interest of these building families, which provides incentives for the creation of residential property and the mobilisation of building land.

"A real estate tax that depends on the development of rents threatens to increase the tax burden for today's building families in the future. The independence from rising rents is the strongest argument in favour of one's own house", explain the managing directors of the BDF, Achim Hannott and Georg Lange. A value-dependent model of property tax would thus inevitably contradict the state promotion of home ownership, e.g. through the construction child allowance. "The federal states should use the now agreed opening clause for property tax to introduce an area model that is comprehensible to all citizens," said Hannott and Lange.

In particular, the prefabricated construction industry is calling on cities and municipalities to levy a "property tax C" on undeveloped land. This would bring more quickly areas for the construction of affordable new apartments onto the market. Hannott and Lange call for "the municipalities themselves to be made responsible first, however, as they are far too hesitant to declare the urgently needed building land".

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