Government unveils €77 million housing policy to tackle housing crisis

Interior Minister Konstantinos Ioannou introduced the government's new housing policy. In his opening statement, Mr. Ioannou outlined a comprehensive plan involving multiple levels of actions and measures, which allocates €77 million over a five-year period for the implementation of specific initiatives.

He emphasized that the new policy addresses housing challenges from two key angles. On one hand, it focuses on short- and medium-term measures to boost housing production and ensure affordable housing units are made available to the public, particularly those in the small and medium-sized class. To achieve this, incentives are offered to exploit currently unused housing stock to provide immediate housing options.

One such initiative is the "renovate-rent" sponsorship plan, designed to improve the quality of existing vacant housing and integrate it into the rental market as an attractive option. This measure is expected to support the construction sector in utilizing urban incentives and other plans, with a completion timeframe of approximately two years.

Furthermore, the government is actively promoting the production of new housing units through plans such as "Built to Rent" on private land, revising planning incentives to stimulate construction and streamline licensing procedures. These actions create an appealing package for the construction industry, ensuring a significant increase in housing units, including a minimum number of affordable units.

On the other hand, measures are in place to facilitate access to affordable housing for specific population groups, including young individuals, couples, low-income households, moderately paid citizens, and the socially vulnerable. Financial assistance for first-time home construction or purchase is provided to address the housing challenges faced by individuals under 41. Additionally, housing rent subsidies are being offered to alleviate the impact of rising interest rates.

The policy also includes a focus on Rural Development, reintroducing measures to grant land to low-income families based on specific criteria and identified needs. It aims to provide immediate access to existing plots while further developing an additional 300-500 plots over a three-year period.

In addition, existing housing plans and benefits for rural, mountainous, remote, disadvantaged, and border areas are strengthened and expanded. Notably, these initiatives have already benefited approximately 1,300 individuals at a cost of €46 million since July 2019.

Furthermore, as a part of the government's commitment to addressing social issues through housing, there are plans to construct apartment buildings on vacant land in refugee settlements, providing housing solutions for individuals and families with specific social and economic vulnerabilities. This includes the implementation of the "build" plan to secure housing for residents in government settlements for displaced persons.

The policy also announces an amendment to rent subsidy criteria for displaced persons, involving a 15% increase in subsidy amounts in existing categories of beneficiaries.

In conclusion, the comprehensive measures and plans presented are a result of thorough study and economic feasibility, reflecting the government's dedication to a human-centered and socially responsible approach to housing, with the goal of preserving social cohesion. The key principles include increasing the housing stock while preventing market overheating, ensuring access to decent housing for all citizens.

Moreover, the involvement of the private sector is expected to expedite the implementation of these measures, aiming to make housing units available for rent or purchase sooner. The government acknowledges and appreciates the contributions of various organizations and groups in shaping the housing policy.

The government emphasizes its commitment to cooperation and openness to additional proposals as it moves forward in the implementation of these projects. Finally, Interior Minister Konstantinos Ioannou expressed gratitude to his colleagues and the various teams involved in making this housing policy a reality.