Hungarian Prime Minister Péter Magyar has announced a series of economic measures, including a new housing support scheme to replace the Otthon Start programme, expanded funding for affordable rental homes and student accommodation, the gradual removal of food price margin caps and a HUF 100 billion road repair programme planned for 2027.
Speaking on Monday, 19 October, Péter Magyar outlined plans to reshape housing support, help young people buy or build homes, improve energy efficiency and increase public investment in roads. Several of the measures are due to begin next year, while the government also pledged to retain existing family support schemes and household utility price reductions.
Wekerle Plusz to replace Otthon Start
The government plans to launch the Wekerle Plusz housing programme, replacing the Otthon Start (Home Start) scheme with a system Magyar described as fairer. He argued that, although Otthon Start had a worthwhile objective, its implementation disproportionately benefited wealthier households and investors.
According to the prime minister, 59 per cent of loans under the programme went to the wealthiest tenth of the population, with some state-supported purchases made for investment purposes rather than owner-occupation.
Under Wekerle Plusz, people aged 18 to 41 would be able to access fixed-rate loans at 3 per cent interest to buy or build a new home. Loans for existing properties would carry a fixed 5 per cent interest rate. The government also intends to reduce banks’ commissions associated with the loans.
The wider Wekerle Sándor housing construction programme would direct HUF 30 billion (EUR 82.6 million) in EU development funding towards affordable rental housing and student accommodation in 2027. A further EUR 550 million is planned over the following three years, alongside bank and private-sector financing.
Prime minister Péter Magyar also confirmed that the preferential 5 per cent VAT rate for the construction and purchase of new homes would remain available next year.
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Housing savings and renovation support
The government also plans to introduce a Wekerle Plusz housing savings scheme. People saving part of their salaries over five to ten years would receive a state contribution equivalent to 10 per cent of their deposits during the first five years, rising to 20 per cent from the sixth year onwards.
A separate home renovation support and loan scheme would focus on energy efficiency. The maximum available loan would rise from HUF 6 million (EUR 16,500) to HUF 15 million (EUR 41,300), with a fixed interest rate of 3 per cent.
Applicants could also receive non-repayable state support covering 30 to 50 per cent of eligible costs, capped at HUF 7.5 million (EUR 20,700). The largest grants would go to homes with the poorest energy ratings.
Prime minister Péter Magyar said the rules governing the family home creation allowance, the rural version of that scheme, the baby-expecting loan and household utility price reductions would remain unchanged.
Food price controls to be phased out
Péter Magyar also announced plans to phase out the government’s food price margin cap, a measure that limits the retail margins charged on certain products.
He argued that the policy had failed to make shopping cheaper, claiming that retailers had offset losses by raising prices on other goods and that domestic suppliers had been pressured to accept discounts. The government wants to encourage quality food production and competition between retailers through genuine promotions.
The announcement comes as the government says food inflation has eased and prices for several products have fallen. The timing and detailed arrangements for ending the margin cap were not specified in the announcements.
More on the Hungarian government: PM Péter Magyar reveals major tax cuts, family allowance and pension rises for 2027 budget plans
HUF 100 billion for roads in 2027
A HUF 100 billion (EUR 255.6 million) road development and pothole repair programme is planned for 2027. Péter Magyar said the government would spend more than HUF 400 billion (more than EUR 1.1 billion) on road repairs and development next year, while continuing inherited projects, including the Mohács bridge, the expansion of the M1 motorway and construction of the M49 motorway.
The government also intends to review road concession fees, reducing the budgetary burden from HUF 566 billion to HUF 320 billion (from EUR 1.56 billion to EUR 881 million). Péter Magyar said this would save HUF 246 billion, adding that taxpayers should receive better roads and better value for money.
The announcements set out an ambitious agenda for housing affordability, consumer prices and infrastructure. The impact will depend on the final programme rules, implementation timelines and how the planned spending is delivered.
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