Will housing privatization be terminated in Ukraine?

Since 1992, the Law on the Privatization of State Housing has enabled millions of Ukrainians to acquire their own homes. However, in 2025 this thirty‑year program is coming to an end: the Verkhovna Rada is considering draft law No. 12377, which terminates free privatization and repeals the outdated 1983 Housing Code, replacing them with new affordable‑housing mechanisms.

New draft law: key provisions and timing
The draft law on the basic principles of housing policy was adopted by the Verkhovna Rada in the first reading on 16 July 2025. Under its provisions, one year after it enters into force – but not earlier than one year after martial law in Ukraine is lifted or cancelled – the Law of Ukraine on the Privatization of the State Housing Fund will cease to apply, meaning that the end of privatization depends on both the start date of the new law and the duration of martial law.

According to official sources, work on the amendments is virtually complete, with more than 95% of proposals processed, and the effective date set for 31 December 2025, in line with European Commission requirements under the Ukraine Facility program.

Why privatization is being stopped: from Soviet legacy to European integration
Ending privatization is not a random step but a response to the obsolescence of the 1983 Housing Code, which still relies on Soviet‑era approaches and no longer meets market‑economy conditions or European housing standards. The new law is one of the conditions of the Ukraine Facility program under which the EU provides funding to Ukraine, so repealing the old code and phasing out ineffective privatization is viewed as a necessary step to modernize the housing sector.

The system that has operated since 1992 has not solved the housing problem: hundreds of thousands of people are queued for better housing, while the state supplies only a few hundred apartments per year, and the situation has been aggravated by mass internal displacement and more than 4.5 million IDPs.

How the phase‑out will work and what it means in practice
Ending privatization means that it will no longer be possible to obtain state or municipal housing in ownership free of charge, but the program will be wound down gradually. Citizens who have already applied for privatization or are in the process will have at least one more year after the law takes effect, with the countdown starting no earlier than a year after martial law ends.

Unprivatized apartments will remain in state or municipal ownership and will form part of the housing stock of local communities, which the state can use for social programs, including a system of social rent.

Alternative mechanisms: toward social renting and affordable housing
The end of privatization does not deprive Ukrainians of the chance to own a home: instead of the old model, a system of social housing, rent‑to‑own schemes and other modern support tools will be introduced. Its core will be social housing with an option to buy after roughly ten years of renting, when part of the rent is credited toward the purchase price.

At the same time, housing cooperatives will be revived, public‑private partnerships will develop, and operators of affordable housing will emerge. Vulnerable groups – service members, IDPs, people with disabilities and large families – will receive special benefits, housing vouchers and co‑financing programs to help them access housing more quickly.

European context and Ukraine Facility requirements
The phase‑out of housing privatization is closely linked to Ukraine’s EU integration. The Ukraine Facility provides for €50 billion in support until 2027, and adopting the law on the basic principles of housing policy is a mandatory condition for receiving these funds. The European Commission insists that Ukraine replace its Soviet‑based housing system with modern, market‑ and socially‑oriented mechanisms, and ending ineffective privatization is regarded as a key step in this direction.

Practical advice for those who have not yet privatized
Given the imminent end of the program, authorities and experts urge those who have not yet formalized ownership to do so as soon as possible, because once the new law takes effect the opportunity will be lost. The procedure remains relatively simple: submit an application, copies of passports, the housing order (original or duplicate), a technical passport and other documents in person to the ASC, by mail, through a representative, or online via Diia.

Free privatization is granted only once in a lifetime, and even a minimal share in an apartment counts as using this right; emergency, service or dormitory housing, and property under arrest or in the Chernobyl exclusion zone cannot be privatized.

Conclusions: the end of one era and the start of another
Ending housing privatization in Ukraine closes a thirty‑year chapter during which millions of citizens became homeowners, but new conditions require modern solutions. The program will be phased out within statutory timeframes, and its place will be taken by other tools – social rent with an option to buy, cooperatives and public‑private schemes – intended to modernize housing policy and ensure safe, affordable housing for all Ukrainians.

Author – Yuliia Popadyn, attorney in tax and housing law at the Attorneys Association “Winner Law Firm”. If you have any questions about housing privatization, document processing, property rights or other related issues, please contact our team of professionals in housing policy and civil law.