Central bank chief: Government all talk, no action on housing

The governor of the Czech National Bank, Jiří Rusnok, has accused the government of speaking emptily about making housing more accessible in the Czech Republic but not doing anything in practice. He told the weekly Ekonom the central bank was the only organisation taking steps to deal with the housing market.

Mr. Rusnok said the main problem was that new apartments were not being built in sufficient numbers. He also said property tax in the Czech Republic – which he described as “crazily low” – should be increased and short-term rentals should be regulated more.

The Czech National Bank has tightened mortgage rules in recent years. However, Mr. Rusnok says it is not its job to regulate the offer of apartments.

Critics say excessive red tape is preventing the construction of flats, leading to a shortage and a marked rise in prices.

Author: Ian Willoughby