Recovery in mortgage lending is hindered by a moratorium on taking liens, non-transparency of the primary housing market and the fragility of the right of investors, according to the Financial Stability Report of the National Bank of Ukraine (NBU).
“The market needs to be made, on the one hand, more transparent, and on the other, it needs to be regulated in such a way that banks are comfortable lending to primary housing, ensuring the rights of lenders,” First Deputy Governor of the NBU Kateryna Rozhkova said during the presentation of the regulator’s report in Kyiv on Tuesday.
According to her, the barriers in the current legislation negatively affect the margin level of developers, which reduces the potential development of mortgage lending.
“We are working to amend the law and hope to adopt it as soon as possible in order to make the market more attractive to all players,” Rozhkova said.
“We really believe that the situation with Ukrbud undermines the confidence of customers and investors in this sector. There is no doubt about that. This is one of the reasons why we paid more attention to this issue in our report,” she said.
At the same time, developers surveyed by the NBU predict the intensification of mortgage lending in the next three years.
“Under favorable conditions, next year banks plan to provide 15% more mortgage loans than a year ago,” the NBU said.
