Joint press release with BMI: one year of 'Baukindergeld' – applications from 135,000 families in Germany

• EUR 2.8 billion of promotional business volume
• Target group of young low-income families reached

Around 135,000 families in Germany have applied for grants within one year since Baukindergeld was introduced. Applicants have already received grants totalling some EUR 2.8 billion within the short duration of the programme. A total of EUR 9.9 billion is available for Baukindergeld for the entire term of the programme.

Federal Minister of the Interior Horst Seehofer: “After one year of the programme and 135,000 funding applications, it is clear that Baukindergeld is a real success. We have made it easier for thousands of families to buy their own homes. And what's more, Baukindergeld relieves some of the pressure on the rental housing market in Germany and provides families with a solid long-term old-age provision. Baukindergeld is thus one of the central pillars of the housing policy of this federal government.”

Member of KfW's Executive Board Dr Ingrid Hengster: “We are pleased that Baukindergeld is reaching the intended target groups. Young families with small children in particular are supported in achieving home ownership. This is a great success.”

The assessment of the promotional programme after one year is impressive:

The goal of supporting mainly young, low- and middle-income families with Baukindergeld has been achieved: 35 per cent of the families have children up to the age of two, 65 per cent have children up to the age of 6. 70 per cent of the applicants are between 25 and 40 years old. More than 80 per cent of the supported families have one or two children, around 60 per cent have a taxable household income of up to EUR 40,000.

Most applications come from North Rhine-Westphalia (29,728), followed by Baden-Württemberg (just under 18,072) and Lower Saxony (16,569).

The applications are distributed geographically as follows:

• Independent large cities: 16 per cent
  Urban counties: 44 per cent
  Rural counties with small concentrations: 21 per cent
  Sparsely populated rural counties: 19 per cent

Since the beginning of the year, new construction projects have accounted for 24 per cent of Baukindergeld applications and 76 per cent for the purchase of existing properties. The ratio of new construction increased with the increasing number of completed homes in 2019 and corresponds to the market average for the purchase of residential property.

Baukindergeld is the name of a grant from the Federal Ministry of the Interior, Building and Community to support the construction of purchase of owner-occupied housing for families with children in Germany. The primary aim is to increase the rate of home ownership by young families in Germany, which is very low by European standards. Since 18 September 2018, it has been possible to apply online to KfW Group for Baukindergeld.

A family receives EUR 1,200 per child per year. The benefit is paid for ten years, so that families with one child receive a total of EUR 12,000, families with two children EUR 24,000 etc. Families who signed their purchase contract or received a building permit between 1 January 2018 and 31 December 2020 can submit an application for Baukindergeld. Applications to KfW are to be submitted online via the KfW grant portal – within six months after moving into the subsidised property.

You can find further information at www.bmi.bund.de