Deputy Prime Minister Alexander Zhukov conducted a phone conference on the implementation of the priority Accessible and Comfortable Housing National Project in the first half of 2008

He said that there was a tangible increase in the commissioning of housing in 2006 and 2007. Last year, 60.9 million square meters were turned over to tenants. Construction rates in 2007 grew to 120.6%. He emphasized that last year, per capita commissioning of housing increased from 0.3 square meters to 0.43 square meters compared with 2006.

At the same time, Mr Zhukov observed that there was a certain decrease in housing construction in the first half of 2008 compared to the same period last year. He explained this by seasonal fluctuations and statistical errors.

Mr Zhukov emphasized that the Government is paying primary attention to the task set by the President to build one square meter per capita a year. He mentioned that support for young families is a priority in housing construction. "There has been a substantial increase in mortgage loans in the first quarter of this year compared to the same period last year, despite the persisting high interest rates on these loans," he noted. Having explained this by rampant inflation, Mr Zhukov emphasized that the Government expects a high increase in the number of mortgage loans this year.

He expressed the opinion that infill development is no longer relevant in the context of solving the housing problem. "Comprehensive development is the most promising one. The time of infill construction is over," he said and stressed the need to devote priority attention to the comprehensive development of territory under construction.

Mr Zhukov said that the Housing Construction Assistance Fund will begin working in the next few months.