German sawmilling sector welcomes restart of federal house construction stimulus programme

The German federal government has now made a further €1bn available for the new construction and acquisition of climate-friendly properties, following the end of the Climate-Friendly New Building programme in December 2023 due to funds being exhausted. 

DeSH president Dr Stephen Lang said resumption of KfW funding was welcome as financial incentives for building were urgently needed, due to the economic situation.

“Against the background of increased interest rates and material costs, the programme is not only an important signal to everyone willing to build and buy, but also an important stimulus for the construction industry in view of the crisis in housing construction,” he said.

However, Mr Lang said repeated short-term stops and adjustments to the funding framework have led to considerable uncertainty on the part of developers and investors.

He said reliable framework conditions, a continuous funding framework and a stronger focus on climate-friendly building materials such as wood were essential to restore trust and sustainably stabilize the construction industry. 

Mr Lang said housing approval numbers and incoming orders plummeted last year, with the number of cancellations increasing significantly.

“In view of these developments and the increasing shortage of living space, we are facing major challenges,” he warned. “To ensure that the crisis in housing construction does not become a social crisis, a forward-looking construction policy and consistent use of sustainable building materials are now more important than ever.”

DeSH is the main representative organisations representing Germany’s sawmilling industry. The sawmills in Germany employ more than 25,000 employees, generating annual sales of around €6.5bn.