New programme for houses with cheap rent coming soon

When it will run and who will be affected

The Ministry of Social Cohesion and Family seems to be in the process of implementing the new programme for low rent houses for young people, young couples, low income earners, single parent families, young women victims of domestic violence and vulnerable groups of citizens in general.

These are the changes that will be made to the institutional framework of the "social rent" programme through which houses will be provided on the basis of income and social criteria to the above-mentioned citizens.

In fact, the Ministry of Social Cohesion and Family is expected to put the bill for the strengthening of the "Social Counterpart" program to public consultation in the near future and then it will be voted on in Parliament. In any case, the program will run within 2025, according to the minister in charge, Domna Michailidou. Essentially, with the Social Counterpart, old properties will be renovated and new houses will be built on undeveloped land.

Social consideration: what it is and who it affects

With the passage of this bill, some public properties will pass "into the hands" of private developers in order for them to undertake the construction of modern buildings.

The developers will keep up to 70% of the building for their own benefit, while the remaining 30% will be made available to the state to be used by the state to meet the housing needs of the vulnerable. Essentially, new or vulnerable households will be able to be housed at affordable rents in new or renovated houses. It is also noted that tenants will be able through the 'rent to own' scheme to buy the house they live in after a period of agreement and consistent payment of rent.

What are the objectives of the programme

However, through the new programme "Social Counterpart" the government sets the following objectives:

To provide social rent to vulnerable groups of citizens.

Increase available properties on the market.

Make use of unused public property.

Specifically, the new bill is expected to make the following changes to the program, among others:

1) The concept of Social Consideration will be extended. That is, the programme will cover:

a. the construction of new buildings on unbuilt buildings

β. and the renovation or repair of already built premises.

2) The contractor may be entrusted for a predetermined period of time with the full management of social housing (leasing, collection, maintenance).

3) It will be possible to transfer an "undivided" interest in the property to the contractor. Recall that so far the contractor has been able to use or exploit some horizontal properties.

4)An electronic register of the General Secretariat for Demographic and Housing Policy will be created, where procedures, tenders and contracts will be recorded in detail. This will ensure transparency but also better control.

5) OPEKA will regulate in more detail the criteria and procedure for the selection of beneficiaries by the same organisation.

6) At least 30% will be the minimum percentage of social housing. He recalls that so far this rate is between 30% and 60% with no detailed regulation of the other conditions.

What property market operators say

In fact, according to property market agents, the Social Incentive Program is not expected to bring a general reduction in rental prices.