Newsroom
Low-income households that received state-owned land to build their first homes now face the real threat of losing their properties to lenders, according to a damning report by the Audit Office of the Republic of Cyprus. The warning stems from a special audit of government land allocation schemes in 12 communities, covering 2018 and 2020-2022.
The affected areas include Agioi Trimithias, Anagia, Mammari, Souni-Zanakia, Prasteio Avdimou, Mosfiloti, Xylofagou, Tersefanou, Avgorou, Frenaros, Emba, and Kouklia. These families were approved for land under a 2010 housing scheme overseen by the District Administrations and the Ministry of Interior, designed to help lower-income citizens achieve homeownership. However, due to rising borrowing costs and inflation, many are struggling to repay their loans, placing them at risk of foreclosure.
Living Below the Poverty Line, Burdened by Debt
The report highlights that many beneficiaries have seen no significant income growth in recent years. In fact, some now fall below the poverty line, making it increasingly difficult to meet their loan obligations for both their mortgages and their payments to the Republic of Cyprus for the land. Without intervention, these financial struggles could lead to loan defaults and property seizures, the Audit Office warns.
Lack of Oversight Leaves Families Vulnerable
Adding to the concern, the audit revealed a lack of monitoring mechanisms to ensure compliance with the terms of the rent-to-own agreements. This means District Administrations are unaware when recipients fail to meet their obligations, delaying any action to reclaim state-owned plots in cases of non-compliance.
The findings paint a troubling picture of financial hardship and weak institutional oversight, raising serious questions about whether these housing schemes are truly protecting the most vulnerable families or leaving them trapped in debt with the risk of losing everything.
