Alexis Tsipras: four-point plan to tackle the housing crisis

A rent allowance of up to 350 euros to 150,000 young people up to 44 years old, a blockade on Airbnb funds, a housing bank for low rents, a new bankruptcy law, are among the measures for which SYRIZA-PS President Alexis Tsipras pledged, speaking at a special event of his party on the housing problem.

The president of SYRIZA-PS described the social reality experienced by the majority of the society due to the crisis of poverty, while he developed his party's strategy to stop the housing crisis.

He attacked the government for favouring a speculative policy of funds and the uncontrolled development of Airbnb, leaving citizens defenceless. «Greece is the only country in Europe where 40% of the population, 1.7 million households out of a total of 4.1 million, is currently in dire housing crisis,» he said and explained: «Because they spend more than half of their income on their housing needs, on rent or mortgage payments, on electricity, heating or cooling and utilities. To give a benchmark, the corresponding figure in the EU is 9%. And the second worst, after Greece, is Bulgaria with 17.5%».

He first referred to the accuracy crisis and described the possibilities for immediate relief:

-With the cap on the wholesale and retail electricity market.

-With the restoration of the public role of the PPC.

-With the end of the obscenity of producers.

-by reducing the excise duty on fuel and VAT on basic consumer products.

-With the cancellation of part of the pandemic debt.

-By raising the minimum wage to 800 euros.

He continued by saying that «we are planning similar direct interventions to address energy poverty of households with accumulated debts for electricity, gas, rent, with cut off electricity supplies, facing a food crisis. Our plan, for example, provides for:

-The free reconnection of electricity

-The provision of free electricity up to 300 kw per month and per household, with a prepaid solidarity card for the purchase of food and basic items.

Mr Tsipras presented his strategy for halting the housing crisis, which is based on a three-pronged approach: Immediate relief, reconstruction and perspective.

His Plan, as he said, is based on the following axes:

• The first axis of the plan concerns the treatment of the non-performing private household debt with the guarantee of the home, Tsipras said and explained: «Of the 4 million households, 3 million own their own homes and of these, 23% have loans and mortgages. There is an immediate and urgent need to prevent a huge wave of divestment of people's property, the likes of which the country has never experienced, even during the hardest years of the Great Crisis under the Memorandum.» To prevent the risk of property changing hands his plan provides:

-The abolition of the extremely anti-social Bankruptcy Law passed by the government of the Southwest

-The restoration of the protection of the main residence of the popular strata and the middle class by subjecting it to both the extrajudicial and the judicial procedure, and the binding nature of the regulations for creditors and especially for the Banks. For vulnerable categories of our fellow citizens, the granting of adjustment will be accompanied by a programme of subsidies for repayment of instalments.

-In addition, for regulated household loans we are planning a major innovation: The creation of a Special Restructuring Fund within the Development Bank that will conditionally subsidize a portion of the regulated debt that the debtor cannot service.

• The second pillar of our Plan concerns the control of Airbnb activity, which is one of the main causes of the continuous increase in house prices and rents and the creation of a new real estate bubble. Over the last three years the rapid increase in house purchase prices and rents has averaged 32%. The recent increase in property values by 20% from 1/1/22 to 55% of the country's regions, as well as the increase in the cost of construction of new housing reinforces the real estate bubble i.e. overpriced rents and purchase costs, the opposition leader said and added: That is why our plan provides :

-The prohibition of Airbnb activities in legal entities, for reasons of public interest.

-The liberalisation of Airbnb activity only for natural persons and up to 3 properties per owner and manager.

-The introduction of tax relief for mixed rental, i.e. 8-9 months as a residence or student residence and 3-4 months as an airbnb.

• The third pillar of the plan is the protection of young people's right to an autonomous and independent life. «Our goal is to regain the right to housing for young people, especially young couples aged 24-44,» he said.

The Plan provides for:

-Doubling both the benefit and the beneficiaries of housing benefit, aged 25-44 years old.

So we are increasing the subsidy from €70 to €140 per month for a household with one member and from €175 to €350 per month for a household with 2 children.

We are also increasing the income criteria accordingly. From €7,000 to €14,000 for the subsidy for a household with one member. And from €17,500 to €35,000 for the subsidy for a couple with 2 children.

The total number of beneficiaries will reach 150,000 households aged 25-44. At a total additional cost of €255 million/year.

• The fourth and most comprehensive axis is the New Housing Policy and ensuring decent housing for the social majority.

To this end, the Plan provides for:

The creation of a Roof Bank by:

a) vacant, unused buildings of the public sector, municipalities, the Church and non-profit institutions of public utility (associations, foundations, legacies, etc.) for purchase or rent.

b) vacant abandoned buildings of private individuals in various municipalities (residential or other uses, if easily convertible to residential) for purchase or rent. Greece has the highest percentage of vacant buildings among the countries of the European Union

c) but mainly from houses and apartments of private individuals who will make them available to the Housing Bank for rent for 3, 5 or 8 years thanks to an attractive package of incentives, which will be given to them by the state. This includes:

• Tax cuts, abolition of rental tax and ENFIA

- Rental payment guarantee 12 months a year

- Energy upgrade of a property and energy certificate

- Fire safety and legal cover

- Guarantee of good condition and renovation of the property after the expiry of the concession

He went on to explain that «the core of our plan is the third case, precisely because it does not require much time and expense for rehabilitation and can indeed be the immediate buffer to contain rents and control the real estate bubble.

Our plan provides for the Digital Management and Disposal of Affordable Housing (AMS)

α) Establishing a framework law for the roof and centralised structure of the State at the level of a State Secretary in the Ministry of Labour and Social Affairs.

b) Creating a digital housing stock observatory that will operate in every municipality in the country and in the central structure of the state and will include housing registers, registers of beneficiaries and matching between beneficiaries and housing.».

The roof, Tsipras said, is an issue of rallying and joining forces that study, experience and know the phenomenon.