Hungarian building materials association MEASZ has proposed a number of incentives for building new homes. The association proposes making available cheap mortgages with a rate of 2.5% for home construction, said the head of the body Győző Vidor. It also proposes allowing home builders to reclaim 20 percentage points of the 27% VAT rate and urges the introduction of a HUF 30,000 subsidy for every square metre of homes with an A+ energy efficiency rating, he added. Vidor noted that home construction in Hungary had fallen by about 80% in the past several years. Home construction rates per 1,000 residents stands at just 1.25 in Hungary, compared with 4.56 in Austria and 2.72 in the Czech Republic. If the proposals are adopted, the number of new homes could climb to 10,370 next year from an expected 8,500 this year. The increase would raise budget revenue from HUF 80 billion to HUF 95 billion.