Ukraine is on the verge of a revolution in the housing sector - at least that’s what the authorities say. And, I must admit, not without reason. At the beginning of the year, people’s deputies adopted and the president signed Law No. 12377 “On the Basic Principles of Housing Policy,” which abolished the Housing Code of the Ukrainian SSR, which had been recognized as outdated for a long time, and which had been in force - no matter how hard it was to believe - throughout the entire period of Independence. It is also called upon to introduce a European model of providing citizens with housing. However, this was only the first step. Now the state has moved on to forming new rules in the field: from global ones - such as housing stock management and approaches to restoration, to those that can directly affect millions of Ukrainians - in particular, regulation of the multi-million dollar rental market, which still actually exists outside the control of the state.

Regarding the latter, the main task is to bring it out of the shadows. And in addition, the creation of a transparent system of interaction between landlords, tenants and government institutions. – At what stage is the housing reform now When are bills planned to be submitted to parliament and are they expected to undergo preliminary public discussion – Work is currently underway on a law on housing management. The bill has already been developed by the Ministry of Community and Territorial Development and is now under public discussion. The plan is to register the document this year and try to get it through the session hall.

In parallel, work is underway to develop narrow, specialized legislation that will relate to the social housing stock. After all, the law “On the Basic Principles of Housing Policy” provided only a framework for the development of social housing, and in order to determine all the formulas, mechanisms for determining the cost of its rental, etc.. - this already needs a special law.

And this law is extremely important - after all, it is part of our obligations under the Ukraine Facility. And this, let me remind you, is a plan according to which Ukraine will receive a total of 50 billion euros by 2027.

– Are there any specific solutions already – We will create a very large information and analytical system, where there will be all the information about the housing stock - communal, state, private. There will also be all the information about government programs. And this system will be owned by the state.

– And Ukrainians will have access to it? – According to the plan, a person who wants to improve his living conditions will be able to log into this system through his electronic account. The system will analyze who this person is, what social category he belongs to, whether he uses subsidies, what income he and his family have - and will give the best solutions for him. Say, if the same income does not allow, the system will offer social housing. And someone with a large income - or a person belongs to a preferential category - will receive an offer, say, to take advantage of the state program Yoselya.

– That is, the system will contain personal data of Ukrainians? – All registers are synchronized today. But there will be more information in the system about the housing stock, about the possibilities of government programs, about what the community owns there, what houses need to be repaired.

Moreover, the European partners who will help restore Ukraine will also participate in the formation of social housing funds. And in order to receive help, they must see a clear plan for the entire country - and, accordingly, understand that this plan is based on specific data. And with this, I am sure, this housing system will help a lot..

– How is the reform of the rental housing market progressing – We already have a number of developments. The first step that parliament will take will be to reduce the high tax burden on those who rent out housing. Let me remind you that today it is 23%. That is, if you rent out your apartment, then on the income received you are required to pay 18% personal income tax and 5% military duty.

But with such a high tax burden, it is almost impossible to do anything to bring the rental housing market out of the shadows. For example, there are very sad figures from the State Tax Service dated 2024. Then only 900 individuals - that is, these are ordinary people who are not business entities - paid taxes on rental income. But we understand that in fact, many more people rent out housing, as evidenced by the number of IDPs, the number of advertisements, and the rapid growth in the number of realtors.

And in our opinion, the main reason why the market is in such a deep shadow is the high tax burden. That's why taxes need to be reduced.

– To what level – A bill has already been registered, which proposes to reduce personal income tax for landlords to 5% – and it will be considered by the relevant tax committee of parliament. Well, of course, we will leave the military training. After all, just recently the Verkhovna Rada voted that it will be collected for another three years after the end of martial law.

Therefore, the plan is: first, reduce taxes. Let the state take a motivating step towards citizens, and only then we can work on various other initiatives that would help the housing market update, improve its health and move to modern European rules.

- And this will really solve the problem? It is unlikely that people who do not want to pay 23% taxes will begin to do so after their reduction - the issue is clearly not the amount, but a fundamental unwillingness to pay. – There are two ways: one is motivating, and the other is punitive.. I'm all about motivating.

It seems to me that when the government cuts taxes, people should understand that part of their “job” is to pay them. People must understand that when they pay 5% military tax, they are supporting the Security and Defense Forces. Accordingly, I think this will become a motivating factor for many - that this 5% goes to a special fund and is spent exclusively on supporting our army.

That's why I believe in Ukrainians. And I believe that the military tax will be paid.

In addition, we must also understand that people will benefit from the fact that they will have legal “white” income.

-What will they get – First of all, the opportunity to work with banks and use lending. For example: now you cannot buy an apartment with a preferential mortgage if you do not confirm your legal income. You also can’t buy a car on credit.. If you do not have “white income”, you cannot use consumer lending for large amounts. Therefore, this is one of the motivating factors why you need to come out of the shadows and pay taxes.

– But for this you can, say, officially work and receive a “white” salary. And at the same time, rent out a “quiet” apartment, receive your 10-15 thousand and simply put it in your pocket. – In my opinion, the higher the official income, the more opportunities for a person.

– Let’s imagine that the tax cut motivated people and they began to come out of the shadows en masse.. How will this affect the rental price After all, it is unlikely that landlords will want to get rid of part of their income - and will probably actually shift their taxes to tenants. – Discussion is ongoing about the potential impact of taxes on rental prices. But you must agree: this is not what determines the price on the market. The price is determined by demand and the ability of Ukrainians to pay a particular amount.

You, of course, can shift any of your expenses to the tenant, but the tenant will say: I can only allocate a certain amount for rent, no more. Therefore, the landlord will have to make a decision - to continue to bend his price and wait a very long time for someone to rent his home, or to adapt to reality. Everything will be decided by the market, not the amount of taxes paid.

– Previously, information appeared that Ukrainians may be required to enter into rental agreements when renting out apartments or houses. Failure to do so would result in heavy fines.. Are there any details already – Indeed, the Ministry of Community and Territorial Development, when introducing a law on the basic principles of housing policy, proposed mandatory registration of all rental agreements. However, at the committee we rejected this provision - and the adopted law does not contain it.

– Why was the norm rejected – Because we consider it unfair that citizens who today are forced to pay such high taxes will also be forced to register. I repeat: the first step is to reduce taxes. And everything else will become possible only after this.

– That is, in the future it is still worth expecting mandatory registration of contracts? – Currently, no legislative initiatives to introduce such registration have been recorded in parliament.

– Consequently, the introduction of fines, as I understand it, has become irrelevant? - That's right. On the other hand, such fines have long been fixed in the tax code. That is, if you rent out a home, do not pay taxes for it, and the tax office finds out about it, then you receive a fine. It is 25% of the amount of the unpaid debt, plus a penalty for each day of non-payment. And if you fail to pay taxes again and this is discovered, then you already pay 50%. That is, there is already a system of penalties.

- And she acts? – I think the tax service is not very involved in this today. And in fact, he’s doing the right thing, because with such a high tax burden, it would be unethical for the state to put such pressure on people.

– Information was previously distributed online that one of the options for stimulating Ukrainians towards long-term rentals could be the establishment of minimum rental periods at the level of 3 years. This is really to be expected? – It’s the experts who offer such solutions – so they are also looking for motivating factors in order to come out of the shadows. However, parliament is not yet considering such an initiative..

- Why? Won't work? – In my opinion, during a full-scale invasion, limiting people to long-term contracts is wrong. We are now not a country that lives in a calm mode and can experiment - our people rent apartments, some for six months, some for three months. And each of us does not know what will happen tomorrow. Therefore, concluding long-term agreements is not what Ukraine needs now.

– About realtors – but not official ones, but those whose job is to post an ad on the Internet and introduce you to the owner of the property. This problem comes up regularly - and in discussions, Ukrainians are unanimous: it shouldn’t be the way it is now. – Or he didn’t even introduce him to the owner, but gave him a phone number, saying that you’ll call him there, and then you’ll pay me a commission.

- That's right. Are there already any developments to solve this issue – We have created a large working group under the committee, which should work out changes to legislation specifically in terms of regulating real estate services. We included in it representatives of the real estate community, and notaries, and representatives of the State Property Fund, and the Ministry of Community Development of Territories, and those who work with commercial real estate. Attracted as much as possible everyone who wanted.

And the conversation began with a simple thing: who exactly is a realtor What services does it provide Where is the standard for such services And, you know, we had a debate – right up to the question of how to write correctly: “realtor” or “realtor”. Because even in the community itself they have not yet agreed on what to properly call them there.

We call them " And when we started asking whether they should check the housing that they service - say, whether it was seized, whether it was in debt, whether it had any technical problems - there was great indignation on the part of the realtors. They directly said that they should not check anything - because, they say, they are only engaged in market research, searching for the best offers, marketing services, and the like.

We say: okay, if you provide market analysis, then what does this analysis look like What do you give the client? Because I have never heard of anyone being shown such a study.. In response we received silence.

- We didn’t agree on anything? – There are still certain shifts. For example, we agreed that realtors should have professional standards that will clearly describe the requirements for the profession. It was also agreed that access to the market should be preceded by certain accreditation or certification, which will be carried out by certain professional associations. We definitely don’t want the state to do this and thus strictly regulate access to the market for certain specialists. But the state must have an understanding of what is happening in the sphere and who works in it.

For what? Because now the realtors themselves don’t know how many there are. Some say 80 thousand, others 60 thousand. And an ordinary person doesn’t even know where to check whether a realtor is really communicating with him - or is it just someone who woke up in the morning and decided that today he will do this, and tomorrow he will do something else.

– It seems to me that hundreds of thousands of Ukrainians have faced this. If not millions. – Yes, that’s exactly the request we received from people.. Because they don't understand what they pay money for? What services do they receive and why is it so expensive After all, the service of a realtor can cost either 500 UAH or 15 thousand. Therefore, it is necessary to state that this is a service, what it is about, what its terms of provision are, what obligations it is, etc..

– And what solutions are planned – Now the working group is discussing, looking at the experiences of other countries. Let's say, realtors say: pay attention to the experience of Poland - they approached legislation very liberally, they even abolished certain regulations just recently. But our society is just asking for state regulation. Because our problem is much more serious. Therefore, we are still looking for the best ways - because there is an understanding that the market must work according to specific rules.

And there are interesting offers. Let's say, introduce a standard agreement. Or you can somehow involve “Diya” in this.

One way or another, unprofessional realtors need to be removed from the market. And in return leave professional people. Yes, there will be few of them, but they will provide quality services for people who want to use them.

– Outdated housing. There is a lot of talk about the fact that the housing stock in Ukraine is outdated or even very outdated. Are there any developments on this issue now – According to estimates, there are currently about 30 thousand in Ukraine. " They began to be built in 1957. And in 2017, the first of them “celebrated” their 60th anniversary. Soon a lot of “Khrushchev” buildings will “celebrate” their 70th anniversary. Therefore, this housing is not only outdated, it also does not meet modern requirements and many houses are in disrepair.

At the same time, Ukraine has a big problem with major repairs. They are very rarely held.

However, if not for a full-scale invasion, the Verkhovna Rada would have already passed the law (No. 6458. – Ed. ) about outdated housing stock. Now it has already passed the 1st reading and now we are quite actively preparing it for the 2nd. Because the war will end, and Ukraine must be ready to deal with the issue of housing policy.

– That bill provides for the demolition of individual houses. They will really be destroyed? – All the Khrushchev buildings, all these outdated quarters, I emphasize, can be demolished. But here the emphasis is on “may”, because these same neighborhoods may also fall under renovation. The point is that the buildings will be left, but certain measures will be taken with them regarding safety and energy efficiency.. Therefore, the plan is this: to adopt a law in order to resolve issues related to the mechanisms of resettlement, compensation and liability - Resettlement. If “Khrushchev buildings are demolished” – how will it happen It will be forced? – There is no definite answer - after all, you will have to look at the specific situation. If this is a “Khrushchev” building that cannot be repaired and is in disrepair, then the person must clearly understand what kind of compensation she will receive.

If these are new square meters, where will they be?. If it is money, what amount?. After all, a person must understand whether he can buy the housing he needs for this money or not.

On the other hand, if we are talking not about demolition, but renovation, it will be necessary to understand where people will live during the period of its implementation. That is, what kind of housing will be provided to them, who will do it, what will be the responsibility for failure to comply with work deadlines, etc..

– Who will make the decision on resettlement This will be forced - or the consent of the residents of the houses will still be asked? – No, there will be no forced eviction. The question now being discussed is how many people will have to decide to demolish or renovate the house.

However, this will not be a 100% standard, because we understand that there will always be people who will say that they don’t want anything. There will also always be those who say that, relatively speaking, they lived in this house for 70 years and don’t want to move anywhere anymore..

But it will be necessary to obtain the consent of 75% of residents, or 80% - a discussion on this issue is currently underway. But 100% is an unrealistic number. Because then not a single “Khrushchev” building will undergo renovation or new construction will be carried out at its expense.

– About money. If, during demolition, a decision is made not to resettle, but simply to give people money so that they can buy their own housing, where will these funds come from Who will give them? We will be talking about large sums. – There can be a lot of mechanisms. This could be money from international donors who will actively participate in reconstruction. Or it could be funds from local or regional budgets.

Of course the money will be big. But if there is a clear plan, it will be possible to calculate all expenses, all income - and understand what the city will get, what the investor will get, what people will get. And this will make it possible to find a model where everyone wins.

– Renovation. What will she look like? It will just be a large-scale renovation - or a complete reconstruction of the house, when, conditionally, the walls will be left and everything inside will be redesigned? – It will depend on the condition of the house. Somewhere it will be necessary to carry out a major overhaul, somewhere it will be easier.

But, as already noted, the main emphasis will be on security. That is, will it be possible to make a shelter under the house?. If not, how close can it be equipped?.

Another mandatory aspect is thermal modernization and energy efficiency. This will also be taken into account when planning.

– And people will be able to change the layout of their housing during renovation, if desired.? Possibly at extra cost. Or it will be impossible to make any changes to the design of the apartments? - Of course, we will not prescribe this at the level of law.. After all, these are very insignificant things that at the everyday level a person can solve on his own.

- That is, there will still be an opportunity to remodel your apartment? – One way or another, residents will be active participants in the process of renovating their home. Therefore, it is natural that they will be able to express their own visions, demands, and wishes.. Accordingly, if people do not agree with the provided project, no one will implement it.

– In general, in Ukraine, the further, the louder they say that our cities are increasingly, so to speak, behind the times. In other words, they become unadapted to modern conditions. First of all, because of the car. There are more of them, there is less space for them. The roads cannot cope with the flow, there is not enough parking, so many people park either directly on the sidewalk or in the outer lanes - and this actually makes the roads even narrower. – This is a very painful issue that needs to be resolved.. And, in our opinion, we should start doing this with planning.. After all, this will determine how comfortable the city will be..

At the same time, we already have a law according to which all cities must update their urban planning documentation, as well as create Comprehensive Spatial Development Plans. This is necessary so that everyone clearly knows: here is a parking lot, here is a road, here is a green area, etc..

This law was supposed to come into effect on January 1, 2025, but we postponed this deadline to January 1, 2028. Because today only 7 communities throughout Ukraine have made such plans.

- Why so little Everyone says that there is no money, there is no time, that everyone is busy helping the front and so on.. But, let’s say, Kyiv definitely has money - a city with a budget exceeding 100 billion can definitely update its master plan.

Therefore, we are now very worried that closer to January 1, 2028, mayors and local government associations will come to us and again say: “We don’t have time, move the deadline for another 3-5 years.”. But this cannot be done, otherwise we will live in this chaos for a very long time..

– Another issue that regularly creates noise on the Internet is toll roads. When will they appear and how much will they cost – I don’t think it’s time to talk about toll roads during a full-scale invasion.. Let's wait for our victory, when we as a state will be able to spend completely different funds on the construction and operation of roads than we do now.

Someday we will come to the issue of toll roads.. But definitely not in the next 5 years.