New housing policy law: what will change for Ukrainians and when will the new rules come into effect

Ukraine has passed a new housing policy law that repeals the Soviet code and introduces new instruments for accessing housing. Find out who will receive support, how social rent will work, and what will change for citizens

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A large-scale reform of housing policy is underway in Ukraine. On January 13, the Verkhovna Rada adopted in the second reading and as a whole draft law No. 12377 “On the Basic Principles of Housing Policy,” which repeals the Soviet Housing Code and establishes new approaches to providing citizens with housing. This was reported by Finance.ua.

The document does not initiate immediate changes, but it creates a legal framework for further decisions by the government, communities, and the market. Let's take a look at what the new law entails, who it will affect first, and what tools will become available to Ukrainians.

Why is the 1983 Housing Code being abolished?

The Housing Code, adopted back in 1983, has long been out of step with the realities of a market economy and the modern needs of society. Along with it, the law on the privatization of the state housing fund, which for years blocked the possibility of privatizing social housing, has also been abolished.

According to the head of the relevant Verkhovna Rada committee, Olena Shulyak, the new law changes the very philosophy of housing relations — from the outdated Soviet model to a more flexible one that is adapted to real life. The document was worked on for over five months: almost 2,000 amendments were submitted before the second reading, and ministries, the market, international experts, and financial institutions were involved in the discussion. The law is also part of Ukraine's commitments under the Ukraine Facility program.

Who will be eligible for free housing from the state?

The new law clearly defines the group of people who will continue to be eligible for free housing. There are four categories: military personnel, rescue workers, police officers, and orphans.

For other citizens who have been waiting for years on housing waiting lists with no real prospects, the state offers other mechanisms—affordable and social housing.

Affordable and social housing: what is the difference?

Affordable housing is the opportunity to purchase an apartment or house on preferential terms for those who are registered to improve their living conditions. The law provides for several instruments: preferential mortgage programs, an updated model of housing and construction cooperatives, leasing, and other financial mechanisms.

Social housing, in turn, will be provided for temporary use — on the terms of social rent. The amount of rent will be determined individually for each family, but it cannot exceed 30% of the household's total income.

Given the significant financial value of such properties, homeowners are increasingly being advised to take care of additional property protection. In particular, express property insurance for Ukrainians can be taken out online at Visit Ukraine — this is a quick way to protect your apartment or house from basic risks without complicated procedures.

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Service housing: new rules

The law significantly changes the approach to service housing. From now on, it:

● is provided on a temporary basis only;

● not subject to privatization;

● used only for the duration of official duties;

● vacated after termination of employment.

Living in company housing comes with a reduced rent. The only exception is for people who became disabled while performing their official duties.

Lease with the right to purchase: how it will work

Another new instrument is a lease with the right to purchase. It allows you to register the property as your own after 10 years of leasing. This right can only be exercised once.

All rent payments will go to a special revolving fund, which will be used to finance the construction of new social housing. Social rent will work in a similar way. This model has long been used in the EU, the US, and the UK, and Ukraine's international partners have insisted on its introduction.

Communities will become the owners of social housing. The law introduces two types of operators:

● social housing operator — a municipal non-profit organization to support vulnerable groups;

● affordable housing operator — a business offering rent-to-own or sale.

To make housing more affordable, communities will be able to allocate land for development free of charge, provide cheap loans or local guarantees.

Digitization of housing policy: a key change

A central element of the reform will be a unified information and analytical system in the housing sector. It will completely digitize apartment waiting lists and consolidate all data in a single digital hub without “manual control.”

The system will operate in three areas:

● people — registration of everyone who needs housing and is entitled to support;

● housing — a complete database of the housing stock with addresses, technical condition, and tariffs;

● opportunities — all state and local programs, cooperatives, financial institutions, and operators.

According to the authors of the law, this will minimize corruption risks and ensure transparency.

In a comment to Finance.ua, MP Roman Lozinsky emphasized that the law is a framework and will not change the lives of Ukrainians “tomorrow.” It establishes general rules of the game, within which the government will subsequently make specific decisions.

According to him, it is especially important to ensure transparency of queues and clear procedures so that the rules do not change chaotically. At the same time, the war complicates planning, and many initiatives are being implemented with delays. It is expected that actual subordinate legislation and new mechanisms will begin to appear as early as 2026.

We remind you! In 2026, Ukraine changed the rules for compensation for damaged housing for co-owners. Read about who can now apply for restoration, how co-owners' objections work, and what new responsibilities are imposed on the recipient of compensation.

Photo: ArchDaily

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