Polish government approves bill to boost spending on social housing

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Poland’s government has approved a bill that would increase spending on social housing to at least 2.5 billion zloty (€596 million) this year – and possibly up to 5 billion zloty – compared to the 1 billion zloty that was spend in 2024.

Local authorities would be able to apply for subsidies to construct new housing or renovate vacant properties, with the aim of financing up to 15,000 units of social housing this year.

Poland has faced a growing housing crisis in recent years, with estimated shortages of up to two million units. Meanwhile, the prices of renting or buying properties have risen at some of the highest rates in Europe and both the former and current governments facing criticism for an insufficient response.

The aim of the new legislation, presented by development minister Krzysztof Paszyk, is to “introduce stable financing of social housing through support for local authorities and investors”, said the government in a statement.

“We are aware of the housing needs of Poles and are meeting them,” said Paszyk, quoted by broadcaster TVN. “This year, we want to allocate 2.5 billion zloty to directly subsidise municipalities that will build municipal and low-cost rental housing.”

Deputy prime minister Władysław Kosiniak-Kamysz noted that this is the minimum amount to be spent in 2025, with a maximum limit of 5 billion zloty. Between now and 2030, the government plans to allocate up to 45 billion zloty for social housing, with the annual limit increased to 10 billion zloty.

Under the programme, local authorities will be able to apply for a non-repayable subsidy for the construction of new apartments or the renovation of vacant properties, which can amount to up to 80% of the value of the investment.

The development ministry notes that the bill – if it is approved by parliament and signed by the president – will result in an least a 2.5-told increase in funding to municipalities for social and community housing”. In 2024, the state budget allocated 1 billion zloty.

In a programme implemented between 2015-2019 under the former government, investment in the construction of 7,731 apartments was financed on preferential terms, with a total of 982 million zloty spent.

Meanwhile, Poland’s National Development Bank (BGK), a state body, set aside a total of 4.5 billion zloty over the 10 years up to 2025 to support investment in residential housing.

Last month saw a clash between different sections of Poland’s ruling coalition over social housing, with regional policy minister Katarzyna Pełczyńska-Nałęcz claiming the budget had been slashed “through the back door” but Paszyk denying this.

Notes from Poland is run by a small editorial team and published by an independent, non-profit foundation that is funded through donations from our readers. We cannot do what we do without your support.

Main image credit: Kamil Switalski/Unsplash

Agata Pyka

Agata Pyka is an assistant editor at Notes from Poland. She is a journalist and a political communication student at the University of Amsterdam. She specialises in Polish and European politics as well as investigative journalism and has previously written for Euractiv and The European Correspondent.