The third topic on the agenda of the Advisory Council meeting on housing finance was mortgage financing for modular and prefabricated homes.
Given Ukraine’s significant housing shortage, the country needs solutions that can help increase the supply of quality and affordable housing more quickly. Modern modular construction technologies could become one of such solutions.
“Modular housing has already been used in various countries as a response to large-scale housing demand and the need for rapid construction. It is important to explore whether we can apply this experience in Ukraine to accelerate access to housing while integrating such solutions into the housing finance system and capital markets,” said Luca Bertalot, Co-Chair of the Advisory Council and Secretary General of the European Mortgage Federation – European Covered Bond Council (EMF-ECBC).
Mortgage financing for such properties remains limited in Ukraine. The Advisory Council has therefore launched a review of international experience, including approaches to the legal status of such homes, their registration and valuation, their use as mortgage collateral, insurance, and lenders’ risk assessment.
“We need to understand how such properties are treated in other markets, what barriers lenders face, and what role the state and housing finance institutions can play in developing this segment,” added Ievgen Metsger, Chairman of the Management Board of PrJSC Ukrainian Financial Housing Company (UFHC).
Participants agreed to continue the research through dedicated thematic sessions. The next step is to identify which international approaches could be applied in Ukraine and what legal, regulatory, and financial conditions are needed to support the development of this segment.
