Rising housing costs and a lack of social and affordable housing have fuelled a crisis across the EU, as more and more people cannot afford to buy homes and are at risk of becoming homeless, the European Union's Agency for Fundamental Rights warns (European Union Agency for Fundamental Rights) in a report published last week. At the same time, "safeguards against eviction and homelessness remain inadequate in many Member States, resulting in situations that undermine the right to human dignity".
To overcome such challenges, the European Agency calls on the EU and its Member States to treat housing as a fundamental right and to base housing policies on EU human rights law, in line with Member States' obligations.
To effectively address homelessness, it is noted that there is a need for comprehensive protection against forced eviction and safeguards for vulnerable groups, including court guarantees, alternative housing, homeless shelters, social and financial support.
Reference is made for each member state and for the case of Cyprus the case of the death of a homeless woman in Paphos is highlighted and the report by the Deputy Ministry of Social Welfare to the Cyprus News Agency that homelessness affects between 200 and 250 people each year: in 2024 the number of people facing housing problems was 225, in 2023 it was 350 people and in 2022 it was 206.
The people affected are mainly Cypriots and Union nationals and occasionally third-country nationals, usually unmarried people but sometimes also families. It is also noted that the reported data do not include asylum seekers. The media reported on cases of people owning abandoned houses, setting fire to keep warm and dying from burns, adding that homeless people in Cyprus are "invisible" until they are found dead.
Also, the report issued by the European Union Agency for Fundamental Rights states that the rent control law, which has been in force since 1983, protects tenants from evictions and excessive rent increases when renting properties built until 31/12/1999 in areas that have been specifically designated as "controlled areas", by virtue of a decree of the Council of Ministers (the well-known rent).
Buildings constructed after this date are not covered by this law, which essentially means that tenants who rent properties in newer buildings are not protected by this law.
The Cabinet, the report says, can state that protection under this law applies in some areas to shops, residences or both, and must review its previous orders at least every five years to see if they need to be revised in light of the prevailing socio-economic conditions.
In order to be able to benefit from the protection offered by this law, tenants must own property, either on the basis of an oral lease agreement or in the event that the first lease has expired and the tenant still retains possession of the leased property. It is noted that this category of tenants is called "legal tenants".
In practice, the Cyprus section of the report states, most areas in Cyprus are covered by the Rent Control Act, which also includes provisions that control and limit rent increases, depending on the prevailing economic situation. Tenants and property owners can apply to the rent control court to determine a fair rent for specific properties covered by law, however no rent increase is possible, for periods of less than two years since the property was acquired or since the last rent increase.
The rent increase to be decided by the court cannot exceed 14%, while special formulas apply to calculate rent increases for vulnerable people and people displaced as a result of the Turkish invasion in 1974. For the period between April 22, 2025 and April 21, 2027, the maximum rent increase allowed for rents under the Rent Control Act is 6%.
Insufficient data and programs of the state
Domestically, the housing crisis has emerged as a major political issue of confrontation between parties and the Government (also) in Cyprus, with the explanations given by the Ministry of Interior not satisfying, while the reports published show that the problem is big.
In the report on Cyprus and the Cypriot economy recently published by the Commission, the technocrats in Brussels say that the state has limited social and affordable housing and does not have a mechanism for special monitoring of the issue.
Social – rented housing is largely non-existent in Cyprus (and as an institution, that is) and well below the EU average, which is 8%. The Commission stresses that the Cyprus Statistical Service does not publish a breakdown of the total stock of housing that constitutes social housing (rented or owner-occupied) or the number of such units managed by the Cyprus Land Development Agency.
The technocrats of the European Commission state in their report on the Cypriot economy that the Government has, on the other hand, introduced measures to support affordable housing. That is, the Commission makes a clear distinction between social housing, which (in other EU countries) refers to housing programs for poor or vulnerable households or people who cannot secure housing on the free market (not even through the incentives provided by the state for affordable housing) and programs to help couples or households buy a house at a discount or some state aid.
Such government plans include rent subsidies for vulnerable groups, through the housing subsidy program for the elderly (funded by the Recovery Fund), also include the housing subsidy program for young couples and people up to 41 years of age, and rent allowances under the guaranteed minimum income program. At the same time, the Government is also aiming to expand the supply of housing, in the hope that the greater supply will lead to a moderation or reduction in prices in the free market. Over 1,900 new units are planned (including around 700 affordable units) in major cities.
What other EU countries are doing for social housing or a larger housing offer?
Recently, in an article, Panos Danos, CEO of the DANOS group of international real estate consultants & appraisers, said that in Austria one in five houses is social housing.
In Switzerland, up to a personal annual income of €100,000, a citizen is entitled to a rent subsidy.
In Belgium, citizens over the age of 65 are entitled to a rent subsidy.
Barcelona has banned Airbnb, to increase the availability of long-term housing rentals by citizens.
Spain has abolished the granting of visas (the right to stay in the country) in exchange for obtaining housing, thus increasing the supply of housing to the local population, in an effort to contain property prices.
In Greece, in areas where demand significantly exceeds supply or in areas where the state wants to reduce development, for environmental purposes, it has increased the investment limit for obtaining a visa to €800,000 from €250,000.
Indicatively, the report states, empty buildings could be purchased and, in cooperation with private individuals, appropriately renovated and offered on the market. Similarly, to provide additional incentives for the development of affordable housing such as a building factor higher than the provided for building, public-private partnership for the development of social housing for rent on selected state lands, taxation of idle properties, tax breaks in the development of housing that will be aimed at young couples + pensioners + small and medium-sized incomes, rent subsidy, preferential loans to those in need to acquire housing, subsidies for upgrading homes to green and those in need of significant renovation, but also subsidies for the creation of healthy housing complexes that will help the physical and psychological health of their tenants – i.e. with certification e.g. WELL and LEED.
How many evictions are taking place in Cyprus
In the case of Cyprus, it is also stated in the report of the European Union Agency for Fundamental Rights that there is no record or estimate of the actual number of eviction decisions issued or enforced.
"There is no plan to map the landscape in terms of evictions," it is specifically noted.
Government policy focuses on providing incentives for the creation of affordable housing, such as urban planning and tax incentives, an increase in the building factor under certain conditions, subsidies on mortgage interest rates, and special support programs for homeownership in mountainous, remote, disadvantaged and rural areas.
