The government on Tuesday announced its plan to tackle ‘the housing problem’ as it said that €77 million will be spent over the next five years.
Interior Minister Constantinos Ioannou said the measures will help the middle class and are focused on the young.
“Beyond just increasing the house stock available, there will be houses and apartments available at prices to rent or buy which are not prohibitive,” the minister said.
He added that incentives will also be offered to improve the current housing stock under the ‘renovate-rent’ scheme, with the hopes that properties which are not being fully utilised will once again be on the market.
That, he said, follows on the advice of the Cyprus Technical Chamber (Etek) which has long called for the large parts of the current housing stock to be renovated and upgraded.
Other incentives to boost the availability of affordable housing are to be offered under the ‘built to rent’ plan. Ioannou said that this will be valid for private properties, with a review of the permit granting process to speed up development.
The minister acknowledged that many, particularly the young and young couples, are facing serious issues due to the housing situation.
“It has clear impacts in other parts of society such as low birth rates,” Ioannou said.
Therefore, he continued, some measures will focus on those under the age of 41 – with one-off payments to help couples buy their first home, while others will receive rent subsidies.
The government will also boost the rural development incentives through the allocation of building plots to low-income families.
He said that plots which were approved in 2013 but not allocated will be immediately made available, while another 300-500 plots will be given out over a three-year period.
The minister’s speech is expected to be followed up with further detailed announcement within the day.