Financialisation of the system of provision applied to housing in Poland

The liberalisation of the housing sector, given the macroeconomic stabilisation in the country, influenced the development of a housing loan as a form of financing the purchase of dwellings in Poland, with large growth dynamics of the household debt since the beginning of this century. A growth in financialisation resulted partly from the fact that newly established households preferred in particular the ownership right, especially due to its limited scope in the period of the centrally planned economy. Furthermore, this growth came as a result of the fact that the segment of dwellings for rent – both private and social – did not work well. Significant commodification of dwellings, with a residual character of social housing and marginal private rental, as well as higher social stratification are the features of the contemporary system of provision for housing in Poland. The financialisation of the housing sphere in Poland took place as a result of disparity in interests rates, favourable foreign exchange rate, using housing loans raised in Swiss francs, with growing importance of property developers housing investment mechanism. This process could take place due to the fact that there was no alternative (in relation to commercial banking) finance mechanism which households could use to fund their housing investments, there were delayed regulations and actions introduced by the state as well as an ineffective information policy targeted at the citizens. Consequently, the availability of money and its low, current cost caused a relatively dynamic growth in dwelling prices, despite unfavourable long-term conditions for borrowers (foreign exchange risk, interest rate risk). Reversing the price trend on the housing market resulted in limitations in the availability of housing finance, a growth in the cost of such finance, and consequently a long-lasting limitation to the possibility of satisfying housing needs by a vast group of the society.