Providing housing for internally displaced persons (IDPs) remains one of the key challenges for the state policy on human rights protection during the armed aggression against Ukraine. Having their own housing means a lot more than just a basic need; it’s also a key factor for social stability, economic capacity, and psychological adaptation of IDPs in new communities. The preferential mortgage loan programme under the «Housing solutions for internally displaced persons» project (KfW) turned out to be one of the few ways to help IDPs buy their own homes.
This was made possible by a number of key advantages:
- mortgage is granted for a term of up to 30 years (but no longer than until the borrower reaches the age of 65);
- interest rate is 3 % per annum;
- borrower’s own (initial) contribution is 6 % of the cost of the housing;
- mortgage is provided for the purchase of finished housing on the secondary market, built no more than 50 years ago or renovated no more than 35 years ago;
- participants in the programme choose the housing themselves – the standard area is 52.5 m² per family of 1–2 people and an additional 21 m² for each subsequent family member.
Citizens who are registered as internally displaced persons, have a confirmed source of official income, do not own housing (except for housing located in temporarily occupied territories or in areas of active hostilities), and have not participated in other state housing programmes after reaching the age of majority are eligible to participate in the programme. Candidates register via the Diia web portal. The selection of participants who are eligible for receiving a mortgage is carried out by random sampling using special software developed by an international implementation consultant and approved by the KfW development bank. The programme has a revolving fund, meaning that returned funds serve for new mortgages. As of July 2025, the programme covered 1,053 IDP families out of 35,700 registered for receiving a preferential loan, indicating limited access to this instrument despite high demand. That is why conducting research is an important condition for improving preferential mortgage loan programmes and considering opportunities for their further expansion. The research provides a deeper understanding of how the programme has affected various aspects of borrowers’ lives, including housing conditions, emotional well-being, financial stability, access to services, needs met, and integration into host communities. The relevance of this analysis is growing in the context of planning long-term decisions for IDPs and the need for sustained support for state programmes.
The research was conducted by NGO «Civil holding «GROUP OF INFLUENCE» with financial support from the Council of Europe as part of the Council of Europe project «Facilitating housing solutions for the war-aff ected people in Ukraine. Phase II», which is implemented under the Council of Europe Action Plan for Ukraine «Resilience, Recovery, and Reconstruction» 2023–2026.
