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In recent years, it has been often read in the press about the monumental floors of Buda Castle, that several public actors close to the government are brutally renting real estate at lower prices.
According to the mayor of Budapest, Márta V. Naszályi, the publicist admitted in the interview that he had circumvented current legislation.
An important element of the campaign of Márta V. Naszályi and the opposition parties was the issue of the liquidation of housing leases in the district, but many of those who live there believe that they too are victims of the “mayor’s fight. with Zsolt Bayer and other famous Fideszians. ”
The tenants got angry
Tenants in Budavár complain that the new decree means a drastic rent increase of up to 100-200 percent for those who must now pay the so-called cost-based rent instead of social rent. In exchange for the significant increase, they receive only a “vague promise” from the municipality, already in a difficult economic situation due to the coronavirus epidemic, which in return the district will then renovate and modernize the apartments instead of the residents.
Due to rules introduced in the 1990s, most of the flats listed in the Castle could not be bought, only rented. In exchange for the rent, many traded their tens of millions of condos to become tenants here. And they had to sacrifice large sums for the modernization of the floors, since they can only be renovated according to special rules for the protection of monuments.
They also complain that the new regulation would deprive them of the inheritance of tenure, because the municipality intends to act in accordance with the law (the practice for decades until now has been illegal).
The inheritance is changing
Until now, it was possible for a notarial deed to allow a close relative to continue the lease after the tenant’s death. Under the new regulation, this would change so that only family members who also live in this home in a way of life can inherit. This is frowned upon by many because millions have been invested in home renovations as tenants while the owner is still the municipality, so the real value of the homes was in the right of tenure, the inheritance of which is now very limited.
They fear that this will also significantly reduce the exchange value of the flats, so in the past they gave away their own property in exchange for the rental right, those who would flee their flats due to the change in conditions cannot do so now.
The principle of necessity applies
About 70 percent of the 1,421 municipally-owned homes in District I may be negatively affected by the new decree, which will take effect on January 1, 2021, according to the plans of Mayor Márta V. Naszályi. Until now, residents could use these flats at a favorable price in exchange for social-based rent.
The district mayor told the Index that according to the current decree, residents could rent flats for 252 net florins per square meter, which was very favorable. However, according to V. Naszályi, most of them could not rent them socially, because of their low income, but because they were compensated for not being able to buy the property twenty-five years ago.
The intention of the local government is that, unlike the previous practice, only those whose net per capita income does not reach 120,000 HUF can rent their apartment on a social basis. Everyone else must pay another cost-based rent. The cost-based rent means that the tenant has to pay as much as the local government for the maintenance of the house, which would be an average of 650 HUF for the last five years instead of the 425 HUF that was not collected for seven years . That is why, according to V. Naszályi, there have been hundreds of millions of deficits in the district’s budget in recent years, which is why the fees must be settled in the future.
According to the leader of the dialogue, at first it sounds really bad that the incomes of many people can increase by up to one hundred or two hundred percent, but in practice this means that those who have paid 18,000 florins will pay 40,000 from now, which according to the Current house prices in Budapest. nor does it count so high.
Many people complain about why the regulation is now before the decision. V. Naszályi said that the district leadership has been working on the creation of the new decree since February this year, negotiations on the matter have been carried out with the participation of citizens for a long time. Although the extraordinary legal system empowers the mayor to decide on a new housing ordinance without the consent of the city council, as in the spring, he will only make a decree now if he has the support of the majority of the deputies and as soon as they have made their own comments.
Believe me, a lot of people are waiting for the housing application, which we can announce under the new regulation. Young teachers, doctors, policemen are queuing in the 1st district for municipal housing, we want to help them.
Said the mayor.
V. Naszályi said he is aware that the epidemic situation will have a difficult impact on the local government and families, so he plans to increase rents from March or April if the new regulation comes into effect early next year.
(Cover image: Szentháromság utca in Buda Castle, on the right the Old Town Hall, in the background the Matías Church. Photo: László Róka / MTI)
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