Government Housing Aid: Real Solutions or Empty Promises?

In recent months, the Prime Minister has announced a series of measures to make it easier to buy a home, especially for young people and families with fewer resources. These include state-backed mortgage guarantees, the construction of new social housing, and, more recently, the idea of promoting rent-to-own schemes in subsidised housing.

At first glance, they sound promising. However, when analysed in detail, they reveal a familiar pattern: promises that are difficult to implement, repeated every legislature, and rarely fulfilled.

1. Public guarantees for mortgages: more smoke than help

The State proposes to act as guarantor for part of the down payment. In theory, this helps families without savings to access credit.

The reality:

• It doesn’t solve real access. Families without initial savings will struggle to sustain a mortgage long-term, especially with high interest rates.

• Artificially raises demand. Easier access to credit without increasing supply only pushes prices up.

2. Social housing: the eternal promise

Every government announces thousands of affordable homes. In practice, however:

• Many projects never even begin.

• Others are stuck in bureaucracy for years.

• Those that do get built are far below the demand.

3. Rent-to-own in subsidised housing: the star measure… that never works

The most striking proposal is to promote rent-to-own schemes for social housing. On paper, it looks ideal. In reality:

• No clear financial framework. Banks are reluctant to finance properties with politically regulated future prices.

• Legal and administrative problems. Subsidised housing has strict limits on use, resale, and pricing.

• It has failed before. Since the 1990s, every attempt has stumbled on the same obstacles: lack of financing and political will.

4. The real problem: supply shortage

All these measures avoid the real issue: a lack of affordable housing supply. Unless new housing is built, permits are streamlined, and public-private partnerships are encouraged, the problem will persist.

Conclusion

The government’s announcements sound appealing, but experience shows most are political promises, not real solutions. The real key lies in increasing housing supply, ensuring legal certainty, and fostering collaboration with private developers.