Saturday, 1 November 2025
The incoming Czech government, formed by ANO, SPD, and Motorists, has set out plans to overhaul the country’s building legislation and housing policy. According to the coalition’s draft programme, housing would be formally recognised as a matter of public interest, opening the way for faster approval of large residential developments and new financial support measures for young families.
The draft document, sent to the president for review at the end of October, outlines a broad reform agenda combining housing affordability with deregulation in the construction sector. The coalition intends to amend the Building Act, returning to key features of the 2021 version that centralised planning under a national authority. It also pledges to simplify the approval process by improving the digital building-permit system, which has faced technical difficulties since its launch. The new administration wants a modular, phased approach to digitisation and promises thorough testing before rollout.
A central pillar of the programme is the creation of preferential loans for young families purchasing their first homes, alongside partial state support for mortgage interest. Families with small children and workers in key professions would qualify for additional benefits. The coalition also proposes a bonus for newborn children and a new framework for tax depreciation on corporate and service housing built for employees.
The State Investment Support Fund is expected to take on a larger role in housing advice and coordination. Planned amendments to the housing support law would strengthen cooperation with municipalities and promote cooperative and affordable rental housing through state guarantees and targeted investment incentives. The private sector would be encouraged to participate in new housing and student-dormitory construction.
At the same time, the government plans to scale back what it calls non-functional or overly strict environmental and energy standards that have increased the cost of construction. The coalition also confirmed its opposition to the extension of the EU’s ETS2 emissions trading system, arguing that it could further raise housing costs.
If adopted, the proposals would mark a significant shift in Czech housing policy—combining state-backed financing and cooperative models with lighter regulation and centralised planning. The coalition is expected to publish its full programme and sign the official agreement in early November.
