Breakthrough in Housing Policy: Ukraine Takes its First Systemic Step toward the Reform

Photo by Glib Albovsky

On 13 January 2026, the Verkhovna Rada of Ukraine made a decisive move toward building a fair and modern housing policy, adopting in second reading and as a whole the Law of Ukraine "On the Fundamental Principles of Housing Policy." This is the first systemic legislative act since Ukraine's independence that not only abolishes outdated norms but also paves the way for a profound transformation of the housing sector in line with current challenges and Ukraine's international commitments. The adoption of the law is a powerful signal to society, communities, investors, and international partners that Ukraine is embarking on a new housing reform that is transparent, effective, and focused on the needs of citizens.

The UNECE supported the Ministry for Development of Communities and Territories of Ukraine in the development of the law from its initial stage. The UN4UkrainianCities project’s experts contributed to shaping its concept, structure, and key principles, providing professional support throughout the process, from initial drafting to the final reading in the Verkhovna Rada.

This law is part of the implementation of the Ukraine Facility Plan, within which housing reform is identified as one of the key directions. Specifically, Reform 7: "Ensuring Access to Housing for Those in Need", envisioning the adoption of a framework law that will serve as the legal foundation for the entire sector. This foundation has now been laid.

The law repeals the Housing Code of 1983, which no longer corresponds to the realities of modern Ukraine, and finalizes the over-30-year process of privatizing the state housing stock. At the core of the new policy is the introduction of modern housing provision instruments: social, service and affordable housing, as well as financial and credit mechanisms such as mortgages and leasing. Particular attention is given to digitalization in the sector, the law envisions the creation of a Unified Information and Analytical Housing System, which will automate needs assessments, improve planning, and ensure transparency and control over resource use. It also establishes foundations for rental market regulation and encourages public-private partnerships in the housing sector.

The new law is based on leading international approaches, particularly the Geneva UN Charter on Sustainable Housing, which emphasizes the importance of accessible, safe, and well-maintained housing as a cornerstone of social well-being. It also aligns with the UN 2030 Agenda for Sustainable Development, addressing poverty reduction, improved well-being, environmental sustainability, and the development of inclusive and safe urban environments. The adoption of this law is an important step toward harmonizing Ukrainian legislation with European standards supporting the European Union accession.

The UNECE project team continues its expert participation in the next stage of the reform, the development of the State Housing Policy Strategy, which will define strategic priorities for the coming years. According to Order No. 924 of the Ministry for Development of Communities and Territories dated 29 May 2025, an Interagency Working Group was established to prepare this document, and UN4UkrainianCities experts are providing analytical and professional support. In addition, the project's experts are involved in the development of two other important draft laws "On Social Housing" and "On Housing Stock Management." These drafts are expected to be submitted to the Verkhovna Rada later this year.

The expected results of the reform include improved living conditions for millions of citizens, including internally displaced persons, through the creation of affordable housing solutions and the introduction of support mechanisms for various social groups. Ultimately, Ukraine's housing policy will move closer to European standards of openness, efficiency, and social justice.

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SUMMARY
of the Law of Ukraine "On the Basic Principles of Housing Policy"

General Purpose of the Law

The law defines the legal, economic, social, and organizational foundations of state housing policy with the aim of ensuring the realization of every person's right to housing and the efficient use of Ukraine's housing stock.

Key Provisions

1. Right to Housing

• Every person has the right to housing that meets standards of consumer quality, safety, energy efficiency, and accessibility.

• The state creates conditions for the construction, acquisition, rental, or use of housing.

• Special attention is given to vulnerable groups: internally displaced persons (IDPs), persons whose housing was destroyed, persons with disabilities, orphans, military personnel, and veterans.

2. Principles of Housing Policy

• accessibility and barrier-free design;

• inviolability of the right to housing;

• transparency and public participation;

• freedom to choose mechanisms for exercising the right to housing;

• social justice and non-discrimination;

• strategic planning;

• social integration;

• economic efficiency.

3. Housing Stock

The law defines three components of Ukraine's housing stock:

• private housing stock;

• housing stock of territorial communities;

• state housing stock.

It regulates the formation, use, management, and oversight of each component, prohibiting the unjustified disposal of social and service housing.

4. Social and Affordable Housing

• Social housing is leased to persons in need of social protection at an affordable rent, based on income and subsidies.

• Service housing is provided temporarily to certain categories of public servants and specialists.

• Affordable housing is created with state support and through affordable housing operators, including public-private partnerships.

5. State Support

Financial and credit mechanisms include:

• preferential long-term loans;

• compensation for part of housing costs;

• rent-to-own options;

• financial leasing;

• support for housing construction cooperatives.

State support is generally granted once per individual.

6. Management and Planning

• A Unified Information and Analytical Housing System is introduced to register housing needs and persons eligible for state support.

• Housing policy is implemented through national, regional, and local strategies.

• Clear division of responsibilities among the Cabinet of Ministers, central executive authorities, regional state administrations, and local governments.

7. Renovation of Housing Stock

The law provides for comprehensive renovation of outdated housing stock while ensuring the rights of owners and improving housing quality and energy efficiency.