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Montage of Bulgarian Houses

 

Motives for Establishment of BHA

The process of transition from centrally planned to market economy during the last  years has caused radical but uncontrolled changes in the housing sector in Bulgaria. This has led to:

  • the abolition of all public subsidies for housing and a lack of state commitment to housing the privatisation of almost all of the existing housing stock, without sufficient provision for maintenance or repair extremely high house prices based on a price-to-income ratio, making the market unaffordable for 95% of those in housing need restricted access to credit for housing
  • a dramatic drop in new construction rates and limited private initiative

All these unfavorable factors create great social tension, which could cause unpredictable outcomes in the near future.The Bulgarian economy is undergoing rapid structural change, with severe budget restrictions and an economic slowdown. In these conditions radical new approaches are needed to provide homes which are affordable.Although the proportion of housing construction is lower than in other European countries, its importance to the working of the national economy should not be underestimated. Bulgarians place a high value on their home life. Providing affordable housing can create social stability in a period of rapid and traumatic change. Unfortunately, the state does not use the potential of new affordable housing to contribute in this role.In organisational structures, Bulgaria is again lagging behind the developed countries. For now, a rich variety of non-governmental housing organisations exist only in researchers' proposals and in draft pilot projects.If affordable social housing is to be constructed, and homes provided, both major investment and commitment from the maximum number of supportive organisations are required.

 

The lack of official backing for housing provision and the inadequate performance of the existing state agencies, facilitating housing sector development, prove the necessity for independent entities concerned with all aspects of housing and comprising both public and private interests.

10/11/03