Nicosia unveils policy on housing problem
Cypriot Interior Minister Konstantinos Ioannou introduced the government’s new housing policy on Tuesday.
In his opening statement, he outlined a comprehensive plan involving multiple levels of actions and measures, which allocates 77 million euros 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 utilize 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 time-frame of approximately two years.
Furthermore, the government is actively promoting the construction of new housing units through plans such as built-to-rent units 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 people, 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 years of age. 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.
