Housing Crisis: 6 Government Interventions

The housing issue is at the top of the government's agenda, as it is one of the most pressing problems in the daily lives of citizens.

In this regard, the Prime Minister Kyriakos Mitsotakis In a few days, TIF will lay out the framework for government intervention from the podium, to bring real relief to thousands of familieswho are facing serious problems due to both high rents and a shortage of housing on the market.

The economic headquarters and the mansion are working on a package of measures whose sole purpose is to increase the supply of rental housing and, through this, reduce prices in order to make the purchase of housing affordable for households.

It is reported that multi-layered solutions will be used to achieve this goal, rather than individual measures. The goal is to open closed apartments that are either not rented out voluntarily or are in poor condition and cannot be rented out. At the same time, the goal is to discourage landlords from offering their apartments for short-term rent and return them to the long-term rental market.

The first goal is supposed to be achieved by introducing incentives and disincentives for closed apartments. In fact, ADEA is already starting to register them in order to have a clear idea of ​​their number, since estimates vary. Some say 200,000 properties, others 600,000.

In addition, it is necessary to obtain a clear picture of the state of each property in order to make an appropriate decision on intervention. The housing supply is also expected to improve thanks to the decision to increase the threshold for obtaining a Golden Visa from the current €250,000 to €800,000. This measure came into effect on 1 September.

On the other hand, the Panhellenic Federation of Property Owners (TOMATO) believes that it is necessary to create incentives rather than punitive measures such as raising ENFIA for closed apartments.

According to the six scenarios currently in force, government intervention will be carried out, in particular, in the following areas:

1. Closed apartments: The government believes that there is a huge stock of idle properties which, under certain circumstances, could impact the supply of housing on the market. The development process will begin with recording their characteristics, such as location and condition, to see how they can be used further.

2. Short term rental: There will be changes in the functioning of the market, mainly of a fiscal nature, and rates will be raised. It is also likely that, depending on the area, there will be a limit on the rental of real estate or a combination of both.

3. Real Estate Registry: The possibility of creating a platform for the public posting of real estate data in order to increase market transparency is being considered. The platform will include information on sale and rental prices in order to combat tax evasion and provide more complete information to the population.

4. «My home II»: The government is awaiting approval from Brussels to include the second phase of the “My Home” programme in the Recovery Fund. The new phase of the programme, with a budget of €2 billion (of which €1.7 billion is community funds), will include changes to the age and income criteria, as well as the conditions for the value and age of the property.

5. «Social rent»: The program provides low-rent housing from abandoned state property. It is planned to build more than 2,500 homes for citizens under the age of 39, with the option to buy them after a certain period of time.

6. «Rent update»: The program will be expanded to include increased subsidies for renovation work in closed apartments to enable them to enter the rental market.

These initiatives are expected to help address problems in the housing market, increase housing affordability for citizens and offer solutions to the housing crisis that affects many Greeks.

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