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KfW to Merge Housing Subsidies Into Two Programs This Year

The state development bank says the shift will simplify access without changing the underlying terms.

Overview

  • At a Frankfurt briefing, CEO Stefan Wintels said more than ten housing schemes will be consolidated into two pillars this year, one for new construction and one for modernization.
  • KfW stressed that eligibility rules and loan conditions remain unchanged, while advisers caution that income caps and prior‑ownership limits exclude many households.
  • KfW reported support for roughly 750,000 housing units last year and highlighted strong uptake for heating aid, even as total new funding fell to €98 billion from €113 billion in 2024.
  • The reactivated EH55 support requiring 100% renewable heat backed 13,988 apartments with about €1.3 billion by year‑end, alongside 36,747 commitments worth €4.5 billion under Klimafreundlicher Neubau in 2024.
  • Debate over revising the national heating law continues, with talks ongoing and the heating industry citing a sales drop to 627,000 units in 2025 and calling for faster clarity.