07.10.2023
A new comprehensive strategy prepared and implemented by the Ministry of Home Affairs seeks to lay a solid foundation for mitigating the huge problem faced by large sections of society today, such as vulnerable groups of the population and especially young couples and families on low incomes.
The problem is known to be acute throughout the country, but especially in Limassol, where due to rapid development with the departure of many foreign companies and the presence of thousands of workers from other countries, rents have literally skyrocketed to unattainable heights.
Speaking a few days ago at a discussion organized by the independent initiative “For Limassol” on the topic of affordable housing, the responsible minister, Konstantinos Ioannou, expressed the great importance that the Ministry of Interior attaches to tackling this problem as a whole.
In this context, he pointed out that the state must address it with a global approach in order to limit its consequences, especially for socio-economically vulnerable groups.
“Efforts that have begun and are in their final stages are focused on this goal – the formation and activation of a single comprehensive housing strategy with an emphasis on affordable housing,” he said.
The new housing policy, which includes a number of measures developed by the Ministry of Internal Affairs, has been submitted to the Ministry of Finance for approval and is expected to be published in October. It is worth noting that during its formation, proposals submitted by various bodies, including ETEC, as well as political parties were taken into account.
The new strategy is focused on measures to strengthen citizens’ access to affordable housing, target groups through its implementation, socially vulnerable groups of the population, and especially young couples and families with low incomes.
The aim of the new housing strategy is to make the most of existing idle housing stock and at the same time create new ones for purchase or rent at an affordable price.
According to preliminary estimates, the implementation of the new strategy will require a total amount of about 50 million euros. It is expected that a total of approximately 15 million euros will be required during 2024.
The new housing strategy consists of the following main directions:
- Renovate-Rent ‘s plan to renovate and rent out unused residential properties: its goal is to integrate empty/unused homes into the rental market by subsidizing owners to renovate/upgrade them.
- Producing affordable housing under the COAG Affordable Rental Plan. We are talking about the production of residential buildings in concession at affordable rents, with priority in Limassol, where the most acute problem arises in obtaining affordable housing (first stage: 138 units in the Agios area Nikolaos municipality of Limassol).
- A rental scheme on private land or with long-term leases on publicly owned land. The design, construction and leasing of a series of residential units using an additional construction factor with a commitment to lease the majority of the development unit from the interested investor, excluding market rent and in part to beneficiaries of affordable housing. Relating to long-term leases of publicly owned land to developers to design, construct and manage a range of residential units on publicly owned land, with an obligation to provide all housing at affordable rents.
- Housing grant scheme for young couples or young people under 41 years of age. A one-time grant depending on the composition of the household for the purchase of a housing unit.
- Mortgage interest subsidy scheme: a proposal to waive part of the interest on mortgages not exceeding €150,000. It will be aimed at young couples under the age of 41.
- Review of the Low Income Housing Program: Reinstate the Low Income Housing Program (a scheme that targets young families based on family composition and income criteria).
- Revisiting existing urban planning incentives. Expanding the provision of urban planning incentives by introducing two new alternative uses of the additional building factor, depending on the needs and planning of each interested land authority.
- Mechanisms for accelerated licensing. City planning and building authorities give priority to development applications that use city planning incentives to build affordable housing.
