Filenews 30 October 2024 - by Angelos Angelodimou
The Government's two new housing plans were approved yesterday by the Cabinet and will probably be announced today, which are hoped to breathe life into the real estate market and at the same time help young couples acquire housing. The two plans for which the Council of Ministers gave the green light yesterday are the "Renovate - Rent" Plan and the "Housing Subsidy Plan for Young Couples and/or Young People under 41". The two projects fall within the competence of the Ministry of the Interior and as the relevant minister Konstantinos Ioannou recently mentioned, after the urban planning incentives and the build to rent project, which received a great response, the government will announce the rent-renovate project and the plan for financial assistance to young couples.
Housing Subsidy Scheme for Young Couples and/or Young People up to 41 years of age: The aim of the plan is to grant one-time financial assistance to young couples and/or young people up to 41 years of age, with the aim of strengthening their purchasing power and their ability to access housing. The total budget of the project amounts to €15 million and it is estimated that the number of beneficiaries will reach a total of 200.Subsidy beneficiaries are young couples or young people up to 41 years of age, based on income criteria and the composition of the household, which are applied to existing Plans of the Care Service, the Social Security Administration and the Housing Plan for Rural Areas. Specifically, the categories of beneficiaries based on income and family composition are the following: Single Individuals: annual total income up to €25,000. Couple (family of two) or single-parent family: annual total income up to €45,000. Family of 3: annual total income up to €50,000. Family of 4: annual total income up to €55,000. Beneficiaries will be approved through the Scheme's implementing body. The amount of the financial aid is determined as follows: · for single persons > €20,000 · for a couple (2 people) or single-parent family > €45,000 · for a family with one or more children > €50,000 Plan Renovate – Rent: The aim of the specific plan is to include empty/dormant residential units in the affordable rent market, with a subsidy granted to the owners for their renovation/upgrade. The goal is to make available 1,000 units on the affordable rental market over a period of two (2) years. The budget of the project amounts to €25 million.
Beneficiaries of the subsidy are the property owners, natural or legal persons. An owner may participate in the Plan for more than one residential unit, provided that all conditions for inclusion in the Plan are met.
Owners, who will apply to the Ministry of Energy to secure sponsorship for the energy upgrade of the residential unit, may also participate in the "Renovate-Rent" Plan for renovations/construction works that are not covered by the YEEB plan. Conditions for inclusion in the Scheme: -The residential unit must be listed as vacant/unused for at least the last 12 months prior to the date of publication of this Plan, i.e. at least from October 2023. -A house/apartment with a consumption of up to 200 kWh per year, according to the EAC account statement, is defined as a vacant/unused residential unit. -The residential unit must be at least 15 years old from the date of publication of this Plan. -In case the owner also participates in the YEEB Plan for energy upgrading, only the costs related to renovations/building works that are not covered by the YEEB Plan will be covered. -The beneficial owner cannot rent the property to a first-degree relative (descendants – ascendants) or by escheat. -The housing units in question should be legally existing (licensed) units. -In the case of co-ownership of the property or the existence of usufructuary persons, the agreement/consent of all is required to participate in the Plan.
Subsidy amount: The subsidy concerns renovation and/or repair costs*, which must be proven with relevant documents. The following are defined as upper limits of financial aid: · for a 1-bedroom residential unit > up to €15,000 · for a 2-bedroom residential unit > up to €25,000 · for a 3-bedroom residential unit > up to €35,000
