The government on Thursday revealed the details of a substantial subsidy programme aimed at assisting young families with tens of thousands of euros for building or purchasing their first home.
This initiative is part of the first integrated housing policy aimed at addressing the housing affordability problem.
During a press conference, Interior Minister Constantinos Ioannou outlined two significant housing plans, namely the renovate-rent plan and the housing plan providing financial assistance to young people and couples up to the age of 41.
The scheme for young people and couples offers a one-time grant ranging from €20,000 to €50,000 to a total of 400 eligible recipients, determined by income criteria and family composition. The primary aim is to help beneficiaries cover part of the costs associated with building or purchasing their own home.
The subsidy will cover 50 per cent of the total eligible expenses, provided these expenses are at least €20,000. Specifically, singles can receive a maximum subsidy of €20,000, families without children can receive up to €45,000, and families with children can receive up to €50,000. Additionally, an extra amount of up to €10,000 is available for individuals with disabilities.
Eligibility criteria include that the residence must be located within a residential zone in a municipality and can be acquired through various means such as construction, purchase of new or existing properties, improvement of properties, or donation. The size of the residence should not exceed 100 square metres, and it must serve as the beneficiary’s primary home for a minimum of ten years for the purpose of permanent occupancy.
Potential beneficiaries can submit applications through an online platform created for this scheme, between 15 November and 31 December 2024.
Ioannou highlighted that addressing issues concerning young people and families is a top priority for the government, noting visible repercussions in other areas, such as declining birth rates and disruptions to the social fabric.
Regarding the renovate-rent scheme, approved by the cabinet the previous day, this provides grants to owners of dormant, vacant, or underused properties. Owners can receive grants between €15,000 and €35,000 to renovate these spaces, which must then be rented out at affordable rates for four years – 30 per cent below the local market rate.
Property owners can start applying for this scheme from November 15, while prospective tenants will have the opportunity to express their interest starting January 15, 2025. The eligibility for tenants will consider family size and income, ensuring that support reaches those who need it most.
After four years of affordable renting, owners can apply for maintenance grants to further enhance their properties. If they do, they could receive a one-time maintenance grant for their residential unit ranging from €3,000 to €5,000.
To qualify, the residential unit must have been vacant or inactive for at least 12 months before the announcement on 24 October 2023 or during the period between 24 October 2023 and 15 November 2024. A vacant unit is defined as one consuming no more than 200 kilowatt-hours per year, verified by the electricity account statement. Additionally, it must have been connected to the Electricity Authority of Cyprus network for at least 15 years before 24 October 2023.
Eligible tenants will be assessed based on income criteria related to household composition while the programme also includes tax benefits, such as complete income tax exemption on rental earnings from affordable rents and increased allowances for property-related purchases.
Additionally, the government aims to grant urban development incentives to property developers to create affordable units. The ‘build to rent’ scheme is operational, alongside revised urban incentives to attract construction professionals. These initiatives fall under the same pillar of increasing housing stock, offering an additional building coefficient of up to 45 per cent of the current allowance for generating more units for affordable rental or sale.
Over 20 developers are eager to take advantage of the incentives, the minister said. This is projected to yield around 178 housing units, or 17,211 square metres, all set to be offered at affordable prices.
The housing initiatives also target rural and mountainous regions with revised plans that have secured €59 million in support and 1,570 approvals. Additionally, a new scheme will allocate land to low- and moderate-income families at 35 per cent of market value.to promote home ownership and community revitalisation.
To tackle the student housing issue, 450 student accommodation units are aimed to be created in the walled city, with the first 13 rooms expected to be completed soon.
For more information visit the interior ministry website at https://www.gov.cy/moi.
