UP Housing: Good news for home buyers in UP, government reduced housing charges, flats will be available at cheap rates.

UP Govt Slashes Overhead Charges: Yogi government has given a big gift to the people who are dreaming of building their own houses in Uttar Pradesh. The state cabinet has approved a huge cut in charges to control the prices of new housing schemes. There will now be less excess burden on the properties of development authorities and Housing Development Council, which will directly reduce prices. This decision will not only give impetus to the real estate sector but will also provide great relief to the pockets of middle class families.

Huge reduction of 14% in additional charges

Earlier, the Development Authority of Uttar Pradesh used to charge 15% contingency charge and 15% overhead charge in any project. This total additional amount of 30% was taken from the customers, due to which the prices of houses and flats started touching the sky. Now the government has changed this system and limited both these charges together to a maximum of 16%. This direct deduction will significantly reduce property prices in new projects.

Relief in installment interest and penalty

Not only the prices of properties, but also the payment process has been made easier.

• Reduction in penalty: Earlier, 3% penal interest (penalty) was levied for not paying the installment on time, which has now been reduced to 2%.
• Improvement in interest rates: The interest rate on allotted properties, which earlier used to be around 10%, has now been limited to MCLR + 1%. This will reduce the monthly burden of loan or installments.

‘No Reservations’ for unpopular properties policy

The government has also made a new policy for those properties which were lying vacant for a long time. Now such “unpopular properties” But any kind of reservation will not be applicable. Any person can buy more than one such property. Apart from this, a provision of special discount of 4% to 6% has also been made on making one-time payment, so that the vacant flats and plots can be sold quickly.

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What will be the benefit to the common man?

Experts believe that after these changes the price of an average flat may decrease by 10% to 15%. Along with this, for the people living in villages, ‘Gharauni’ The law (UP Rural Abadi Record Bill 2025) has also been strengthened, due to which it will now become very easy to take bank loan on the basis of property documents in rural areas.