As India prepares for Union Budget 2026, housing finance institutions are looking beyond incremental measures to structural reforms that can meaningfully improve housing affordability and expand homeownership. With urbanization accelerating and first-time buyers entering the market in larger numbers, the budget presents an opportunity to recalibrate policy levers in line with current economic realities.

Affordability Remains Central Challenge

Affordability continues to be the single most critical factor shaping home-buying decisions across India. While interest rates, income growth, and supply dynamics play important roles, fiscal and regulatory support remain decisive enablers, particularly for the affordable and mid-income housing segments. Industry experts emphasize that the focus must shift to modernizing definitions, deepening access to credit, and strengthening last-mile execution.

Revising Affordable Housing Definition

One of the most pressing structural gaps lies in the definition of affordable housing itself. The current property value threshold presents significant challenges in today's market environment:

The proposed increase from ₹45 lakh to ₹75 lakh would modernize the definition without diluting the intent of affordable housing. This revision would allow policy benefits to reach genuine middle-income and first-time buyers who are currently excluded despite facing affordability constraints. For housing finance institutions, such a move would create greater clarity in product design and eligibility, enabling more targeted lending without encouraging speculative demand.

Strengthening Tax Incentives

Tax benefits have historically played a catalytic role in encouraging homeownership. The sector is advocating for several enhancements:

• Higher interest deduction limits for self-occupied homes, especially for first-time buyers
• Improved monthly affordability through enhanced purchasing confidence
• Stable, long-term tax incentives for better buyer planning
• Greater certainty for lenders in product design

Industry leaders stress that predictable policy signals are far more effective than short-term stimulus measures, providing both buyers and lenders with the confidence needed for long-term planning.

Expanding Credit Access

Access to affordable credit remains central to boosting housing demand. Housing finance companies and banks have significantly strengthened their underwriting, risk management, and digital capabilities in recent years. The sector is seeking budgetary support through:

For underserved segments, particularly informal income households and self-employed borrowers, policy-backed risk-sharing mechanisms can unlock credit flow without compromising asset quality. This approach is especially relevant in Tier 2 and Tier 3 markets, where demand remains strong but formal credit penetration is uneven.

Supply-Side Execution Focus

The industry emphasizes that affordability depends equally on supply-side efficiency. Key areas for improvement include:

• Faster project approvals through streamlined processes
• Rationalization of GST on under-construction properties
• Incentives for developers focused on mass housing
• Coordinated push for approval streamlining at state and local levels

Continued investment in urban infrastructure, including transport, water, sanitation, and connectivity, would enhance the liveability and value of affordable housing projects, making them more attractive to end-users.

Long-term Vision for Growth

Industry experts view Union Budget 2026 as an opportunity to reset the housing narrative by aligning policy with current price realities and evolving buyer profiles. The focus on execution-led reforms rather than incremental adjustments could position housing as a reliable driver of economic momentum, transforming homeownership from a stretched aspiration into a practical, confident decision for Indian families.

Star Housing Finance Limited has announced the reconstitution of its Nomination and Remuneration Committee, effective December 12, 2025. The restructuring was approved through a circular resolution passed by the Board of Directors on the same date, in compliance with regulatory requirements.

Committee Reconstitution Details

The company filed the intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, formally notifying the stock exchange of the committee changes. The reconstitution reflects the company's adherence to corporate governance norms and regulatory compliance requirements.

New Committee Composition

The reconstituted Nomination and Remuneration Committee comprises three members, all holding Non-Executive Independent Director positions:

Regulatory Compliance

The committee restructuring demonstrates Star Housing Finance Limited's commitment to maintaining robust corporate governance practices. The composition ensures independence in the nomination and remuneration processes, with all three committee members being independent directors. This structure aligns with regulatory expectations for listed companies in the financial services sector.

The company has made the complete information available on its official website at www.starhfl.com , ensuring transparency and accessibility for stakeholders. The formal notification was signed by Nachiketa Purohit, Company Secretary and Compliance Officer, confirming the procedural compliance with regulatory requirements.