Credit support for housing construction in Ukraine: recovery opportunities

Research subject. The subject of the study is a set of relations between banks as mortgage lenders
and households (as borrowers) regarding lending to housing construction in Ukraine.
The purpose of the article is to justify the possibilities of resuming lending to housing construction
in Ukraine and further development of the residential mortgage market.

наMethodology
of work – the methodological basis of the study is the dialectical method of knowledge,
the theory of investment, money and credit, mortgages. The following methods were used: systemic,
generalization, analysis and synthesis, observation, statistical – in the study of the peculiarities of the
development of mortgage lending and housing markets; comparison, formalization – to determine the
prospects for the development of housing market with the use of mortgage lending mechanisms.
The results of the work – considered the issues of credit promotion of housing development in
Ukraine, in particular through mortgage instruments. The material is presented in terms of the dynamics
of bank loans to households for the purchase, construction and reconstruction of housing. The peculiarities
of modern development of housing and mortgage lending markets of Ukraine are determined, in particular:
the predominance of trading transactions on the secondary housing market; residential mortgage
stagnation; Maintaining significant financial risks for mortgage operations; a significant dependence of the
mortgage market on cyclical fluctuations in the economy and household expectations. New possibilities
of lending for housing construction are grounded. Proposals concern the development of primary and
secondary housing markets with the activation of mortgages for such purposes.
Conclusions – mortgage lending on housing is constantly relevant and requires the use of new
opportunities for its solution. In modern conditions, the mortgage serves as a financial instrument for the
development of the real estate market. Possibilities of credit stimulation and securing the purchase of
housing in the primary and secondary markets are extremely important. At the same time, it determines
the prospects of the development of the construction industry on the basis of its mortgage lending to
meet the needs of housing. Such a financial–industrial segment of the economy is multicomponent, which
combines the activities of banks, construction organizations and households (the latter as consumers
of mortgage products of banks and purchasers of housing in new buildings). Banks act as partners of
construction organizations and the population throughout the term of a mortgage loan agreement