How will the government address the housing issue – the six interventions being considered in light of TIF

The housing issue is high on the government’s agenda, as it is one of the hot issues in citizens’ daily lives.

In this context, Prime Minister Kyriakos Mitsotakis will unveil, within two weeks of the TIF phase, the framework for government intervention, in order to give real breathing space to thousands of families facing serious trouble, whether due to exorbitant rents or due to the lack of housing on the market.

The economic package being processed in Maximus

As APE-MPE reported, the financial team and the Maximus Palace are working on a package of interventions whose sole objective is to increase the number of homes offered for rent and, through this, to lower prices, in order to make the acquisition of a home more affordable for families.

The information indicates that it will seek to achieve this goal through multi-layered solutions rather than a single intervention. In general, the aim is to open up closed apartments, which are either inactive by choice or are in poor condition and cannot be rented. At the same time, it will seek to discourage landlords from offering their apartments for short-term rent and bring them back to the long-term rental market.

The first goal is expected to be achieved by creating incentives and disincentives for closed apartments. In fact, AADE has already started registering them, to get a clear picture of their number, as estimates vary. Some talk about 200,000 properties, others about 600,000.

A clear picture of the condition of each property will also be sought, so that any interventions can be determined accordingly.

The housing supply is also expected to improve from the implementation of the decision to increase the Golden Visa granting limit from the current 250,000 euros to 800,000 euros. The measure will be implemented as of September 1.

On the other hand, the Greek Association of Realtors (POMIDA) believes that incentives should be provided rather than punitive barriers, such as increasing ENFIA for closed apartments.

According to the scenarios currently in place, government interventions will move along other axes:

1. Closed apartments: The government considers that there is a huge stock of inactive properties, which under certain circumstances could affect the supply of housing in the market. The process of exploiting them will begin by recording their characteristics, such as location and condition, to consider how to exploit them further.
2. Short term leasesThere will be changes in the functioning of the market, with interventions mainly of a tax nature and price increases. There will also likely be a limit, depending on the area, on rental properties or a combination of the two.
3. Real Estate Registry: The creation of a platform for the public dissemination of real estate information is being considered in order to enhance transparency in the market. The platform will include information on sales and rental prices, with the aim of combating tax evasion and providing better information to the public.
4. “My second home”: The government is waiting for Brussels to approve the inclusion of the second phase of the “Beti” programme in the recovery fund. The new phase of the programme, with a budget of 2 billion euros (including 1.7 billion euros of Community funds), will include changes to the age and income criteria, as well as conditions on the value and age of properties.
5. “social compensation”The program will provide low-rent housing from state-owned property. It is planned to build more than 2,500 homes for citizens up to the age of 39, with the possibility of purchase after a certain period of time.
6. Lease renewalThe programme will be strengthened by increasing support for repair work in closed apartments, so that they enter the rental market.

These initiatives are expected to contribute to solving the problems of the real estate market, enhancing accessibility for citizens and providing solutions to the housing crisis that affects many in Greece.