All the measures of the «My Home» Social Housing Plan»

The framework of the Social Housing Strategy, under the name «My Home!» -following the Prime Minister's announcements at the Thessaloniki International Fair- was presented by the Minister of State Akis Skertsos (followed by the presentation of specific, per ministry, aspects of this strategy by the Ministers of Labour and Social Affairs, Kostis Hatzidakis, Kostas Skrekas, Minister of Labour and Social Affairs, Kostis Skrekas, Minister of Environment and Energy, Niki Kerameos, Minister of Education and Religious Affairs, and Spyros Protopsaltis, Commander of the Public Employment Service, while the presentation was coordinated by Yannis Economou, Deputy Minister to the Prime Minister and Government Spokesman).

According to the Minister of State, one of the main objectives of the policy is «to make our country more equitable and to mitigate social inequalities that existed or were created during the multi-year economic crisis of the last decade. To put it bluntly, Greece has become an inhospitable place for young people over the past few years. We have all experienced this through the brain drain, the flight of many deserving young people abroad because the conditions were not there for them to live and create in our country.

But it is not only the economic crisis, he continued, «there is also the climate crisis that affects the natural environment, our common home where we and our children will live in the years to come, there is the pandemic that has significantly limited the freedoms of young people for the sake of solidarity with their elders. There is now the energy and inflationary crisis, which is putting pressure on incomes, there is an environment of generalised crises [...] This creates a veil over the expectations and dreams of young people, which the State must address with policies that will provide solutions to the practical problems they face.

Then, as the Minister of State noted, «the plan has been drafted, we have been working on it for many months with all the relevant ministers». And, outlining the essence of the problem, «in recent years after the depression in the real estate market due to years of crisis, there has been an increase in prices both in rents and in the market of first homes. This is countered by the increase in incomes, we have significantly increased the minimum wage, we have reduced taxes, insurance contributions, however, it remains very difficult to acquire a first home. What was easy or obvious for our parents, that with your salary you could rent, buy or build a house, is not obvious for young people today, it is something that seems utopian to some. So this is where we need to provide answers.

In addition, he highlighted the «declining homeownership, it is at 74%, when Europe has 70%. At the same time we have another problem to deal with: the large stock of old and unused properties. The data from the AADE show that there are 770,000 closed homes out of a total of 6.5 million homes. In particular, 200 000 of these are in Athens and Thessaloniki. These are old houses that do not meet the requirements for a young person, a young family to live comfortably.

Consequently, he added, «interventions are needed to create the conditions for these houses to be re-inhabited. If we increase the share of older homes that meet modern standards, automatically many more properties will fall into the property market, so this will put downward pressure on prices. There is also an issue of age of houses: 95% of houses in Greece are over 15 years old, 85% are even older, over 20 years old.».

Another issue that is added to the equation is that of «the late independence of our young people, and this is related to their economic independence. We need to bend over backwards to help young people get on their feet faster to leave the parental home. At the same time, incentives must be given to occupy old houses, which young people may own but cannot use. On average in Greece, young people leave home at the age of 31 (in the rest of Europe, a 26-year-old leaves home and sets up his or her own home).

The demographic «bomb»

All these indicators contribute to the demographic issue, the Minister of State acknowledged, and «which is a “bomb” on the foundations of society, is a priority of government policy. Greece has a lower birth rate than the rest of Europe - overall, Europe is an ageing continent; Greece is ageing faster than the rest of Europe. So we need a matrix of policies, housing is one of them...».

At this point, A. Skertsos presented the six objectives of housing policy. The first is to reduce the high cost of housing, the second is to increase home ownership among young people, the third is to support young people and young couples for housing rehabilitation. The fourth is to modernise and upgrade older properties; the fifth is to mitigate market distortions arising from secondary factors such as short-term rentals. Finally, the sixth objective is to address the demographic problem.

6+1 policy axes

To this overall problem, the government is responding with 6+1 policy axes that will contribute, as the Minister of State stressed, to «make more properties available at affordable, better prices for both lease and purchase». The first axis is low-interest mortgages for the purchase of first homes by young people, whether single, married or in a civil partnership, aged 25 to 39. The second axis is the massive renovation of vacant private housing. The third axis is a new initiative to exploit public property through the institution of social renting. It is a policy that is being implemented in many other countries and is the modern way in which each country is responding to the issue of cheaper housing at national level. Fourthly, the policy of subsidies for energy upgrading and renovation of housing by young people who own such housing. Fifth axis, the subsidy for the renovation of vacant housing for long-term rental and sixth, the creation of student halls of residence. Last axis, the increase in the student allowance which, especially in the current context of high inflationary pressures, is considered a necessary aid,» said A. Skertsos.

After the specification by the other ministers, the Minister of State referred to another government measure, the changes that will be made to the golden visa, the threshold of which is raised to 500,000 euros (from 250,000 euros) - this is because «we found that these purchases fit the profile of properties that young families could buy, so they deprive the young Greek family of properties. This will come into effect from the new year and in no case will there be a legal loophole in relation to applications made or initiated by the end of the year.».

The programme concerns 137,000 citizens

In conclusion, «we are talking about a multi-level project - the total public investment is €1.8 billion - it is national, Community and private resources leveraged by the market. It concerns a large population of 137 000 of our fellow citizens - if we include the children of young families, this population increases even more. It concerns the children of the Greek middle class aged 18-39, people who are either single or young couples, who have married or are planning to marry or enter into a civil partnership. The aim is to accelerate the exit of young people from the parental home and at the same time support young couples in their first steps so that they feel that the state is there for them,» he also reiterated.

After all, «we have documented best practices from other countries. One element that should be of concern is that the cost of housing in most European countries is close to 20% of monthly/annual household income, in Greece it is almost double, it is 37%», the Minister of State also pointed out and citing an earlier remark by the Governor of the Public Employment Service Spyros Protopsaltis, the Minister of State observed that «there has not been a coordinated housing social policy over time in our country to respond to this problem. In countries like Austria or the Netherlands, 25% of the available housing is allocated for social housing. This means that in Greece, with 6.5 million houses, 1.5 - 2 million houses would have to meet these standards. This is not the case, we are far from it. But we do have a high proportion of owner-occupation with old housing stock. So, we need to intervene and invest in this aging housing stock, to enable Greek citizens to use their properties again, to live and create in them,» he concluded.

Mr. Hadjidakis: Direct or low-interest loans to 10,000 young people for the acquisition of their first home

The detailed presentation of the Social Housing Strategy Plan, announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair (TIF), under the name «My Home», was completed by the Minister of State, Akis Skertsos, the Minister of Labour and Social Affairs, Kostis Hatzidakis, the Minister of Education and Religious Affairs, Niki Kerameos, the Minister of Environment and Energy, Kostas Skrekas and the Director of the Public Employment Service (DYPA), Spyros Protopsaltis.

The presentation was coordinated by the Deputy Minister to the Prime Minister and Government Spokesman, Yannis Economou.

Mr.Hadjidakis referred to the re-launch of housing policy, aiming to address the modern challenges in the housing market, especially for young people and young couples and recalled that the Ministry of Labour and Social Affairs already pays the housing allowance and the housing assistance allowance to uninsured seniors.

In this context, Mr.Hadjidakis announced the implementation of six new actions of the Ministry of Labour and Social Affairs to facilitate the acquisition of housing, including housing loans with favourable terms, as well as the development of private homes and properties owned by the DYPA.

In detail, as announced by the Minister of Labour and Social Affairs, the measures are as follows:

1. Interest-free or low-interest mortgage loans

The measure concerns the granting of mortgage loans, covering up to 90% of the commercial value of the property, with a maximum limit of €150,000, for the purchase of a first home. The scheme will cover the purchase of apartments of up to 120 m2 and year of construction up to 2007.

The beneficiaries of the favourable housing loans will be 10,000 young people or young couples aged 25 to 39 (in a civil partnership or religious/civil marriage), with an annual net income of €10,000 up to the limit for the payment of the heating allowance.

The budget for the action is €500 million (€375 million from the FRF reserve and €125 million from the banks). In the event of the funds being exhausted, it is foreseen that the amount of loans granted will be doubled.

The instalment the borrower will pay for a house worth €100,000 is €275.

As noted by Mr.Hatzidakis, in order for the action to help families with three children and large families and contribute to addressing the demographic problem of the country, there is a special condition in which:

a) where the applicant is a young couple (25-39) years old with three or more children at the date of submission; or

b) when the applicant is a young person or a young couple, who, during the loan repayment period (e.g. 30 years), will have three children, then the interest rate of 1% will be covered by ISPA funds and the housing loans will be granted interest-free.

The implementation of the programme is planned to start from the first quarter of 2023.

2. «COLLAPSE» program.

Lease - in a first phase - over 1,000 vacant private homes under the ESTIA programme to provide low-rent housing for young people and young couples.

This action concerns the use of ESTI properties, which will be available after 31/12/2022. As mentioned, these properties, which were privately rented to migrants, do not require any particular repair/renovation work, as they will be delivered in the coming months in good condition under the ESTIAS programme.

The Ministry of Labour and Social Affairs will offer for another three years to the owners of these properties the same amount of rent that they received from the ESTIA programme from the reserve of the DYPA. The beneficiaries are 2,500 young people aged 25-39, beneficiaries of the minimum guaranteed income, while priority will be given to large families, three-parent families and single-parent families.

The aim is to expand the program in the next phase, based on the supply of homes, which will be available from the owners. According to the timetable, which has been set, by December, the invitation to the owners of properties under the ESTI programme to pay the rent received for an additional three years will be published; by February, the invitation to participate will be published to the beneficiaries and, from March, after the completion of the repair works of the apartments, where necessary, the housing of the beneficiaries will begin.

3. European funds of €200 million for the development of existing vacant private housing

The action involves financing the massive renovation and energy upgrade of 4,000 properties that have been vacant for a long time, in cooperation with their owners, to make them immediately available as affordable housing for young people and young couples. The measure will benefit both the young people who will be housed in them and the owners of the properties who will be guaranteed income and upgrading of their properties. The measure is expected to benefit 10,000 young people and young couples aged 25-39 years old.

The aim is to secure funding from the new NSRF, for which discussions have already begun with the European Commission, and from the Recovery Fund, in the context of the forthcoming review of the resources allocated to the Ministry of Labour and Social Affairs.

By the end of the year, the invitation to interested owners to allocate their properties will be published, followed in 2023 by the selection and renovation of houses and the selection of beneficiaries.

4. Social housing pilot action for vulnerable groups

The project has already been included in the Recovery Fund, with a budget of €1.5 million and is in the process of signing programme contracts with the municipalities. It concerns the renovation of 70 apartments in the municipality of Athens and 30 in the municipality of Thessaloniki, which will house at least 200 young people and young couples up to 39 years old, according to criteria to be defined by the end of the year. The action will cover, inter alia, the cost of renovating the houses and repairing any damage that may occur during the beneficiaries' stay. The evaluation and selection of the houses will be completed in 2023, the renovation of the houses and the selection of the beneficiaries is planned for 2024.

5. Social consideration (1): use of real estate owned by the FRYPA

The social consideration for the development of the real estate of the former OEK is established. Following a tender, properties of the DYPA (the successor to the OEK) and of the State as a whole, in and outside urban centres, will be granted to technical companies, which will undertake to construct modern residential buildings at their own expense and according to the technical specifications of the DYPA. Half of the apartments to be built will be made available on behalf of the State at low rents to young people up to 39 years of age, on the basis of economic criteria, with a special quota for third and large families. The remaining half of the properties will be used commercially.

The action aims to build 2,500 houses, which will house 5,000 beneficiaries. The selection of plots will start this year, while the tender for the selection of the contractors is planned for mid-2023. This will be followed by the construction of the houses, the call and the selection of beneficiaries.

This is the model of cheap housing that other European countries, such as Austria, the Netherlands and Spain, are successfully using.

6. Social consideration (2): use of real estate owned by the Ministry of Labour and Social Affairs

Finally, Mr.Hadjidakis stressed that the Ministry of Labour and Social Affairs contributes to the overall effort to address the housing problem by utilizing properties that belonged to the General Secretariat for Social Solidarity and Poverty Alleviation and are currently inactive.

In particular, the action concerns the renovation of 40 properties and their allocation as social housing to young couples and young people up to 39 years old, applying either the rental model (which will be low to zero) or the rent to own model. It is estimated that the beneficiaries will be 80 young people. The budget is EUR 1 750 000 and is covered by the funds of the CIPA.

The timetable foresees the start of housing delivery in the 4th quarter of 2023, once the upgrading of the properties and the selection of beneficiaries is completed.

The action can be extended to additional available properties, following mapping and identification of the condition of each property.

Mr. Skrekas: “Save - Renovate” for young people and “Renovate-Rent” for empty homes

Two programmes, “I save - I renovate” for young people aged 18-29 and “I renovate - I rent” for the renovation of old empty houses, announced the Minister of Environment and Energy, Costas Skrekas, in the context of the presentation of the new housing policy of the government.

The goal, said the minister, is to provide a solution to the big problem facing young people and young couples, to acquire a modern house that will ensure quality of life and low heating and air conditioning costs.

The “Save - Renovate” programme has a budget of €350 million. It is expected that 20,000 young people will join the programme in order to finance interventions to upgrade their homes and to finance the purchase of household appliances.

It is structured in two pillars:

The energy saving pillar provides for subsidies of 50-90 % with a limit of 25.000 euro while for renovation investments the expenditure limit is 10.000 euro with a single subsidy rate of 30 % for all (i.e. the subsidy reaches up to 3.000 euro). The remaining amount can be financed for the “ExoEconomy” with an interest-free loan and for renovation with a low-interest loan up to 7.000 euro.

The eligibility requirements are respectively a family income of up to 50,000 euros (savings) and 20,000 euros (renovation). The house must be owner-occupied and owner-occupied or the new owner must have the usufruct and be classified in energy category C or lower.

Eligible interventions include in the savings dimension, replacement of windows, external thermal insulation, heating - cooling systems, hot water supply systems, Smart Home devices and household electrical appliances.

Upgrade interventions not related to energy saving include:

Renovation of bathrooms and sanitary ware, renovation of kitchen countries, replacement of entrance door, replacement and repairs of electrical installations, replacement and repairs of plumbing installations, replacement of floor surfaces, coatings and repairs of structural elements. The project is expected to begin in December.

The “Renovate-Rent” programme subsidises the renovation of vacant and unused homes to make them available for leases of at least 3 years. The programme will have a budget of EUR 50 million and the subsidy rate for renovation materials and works will be up to 40 %.

It concerns houses up to 100 sq.m. in which the beneficiary must have at least 50% of usufruct or full ownership, family taxable income up to 40.000Euro and real estate up to 300.000Euro

Beneficiaries will be selected with a score that prioritizes those with smaller properties and requesting less than the maximum (40%).

The programme is expected to be implemented from the first quarter of 2023.

N.Kerameos: Construction of new student residences and increase of the student housing allowance with retroactive effect

The increase in the student housing allowance with retroactive effect for last year and the creation of new student residences are the two axes of support for students and students, as announced by the Minister of Education, Niki Kerameos, during today's press conference, where the Social Housing Strategy was presented.

The allowance, which has already been announced and involves an increase to 1,500 euros from 1,000 euros, in addition to the fact that it will also apply to students of the IEK, will be paid this autumn retroactively for 2021-22. In addition, the allowance is increased to 2,000 euros in all cases of cohabitation.

The beneficiaries of the extended allowance are estimated at about 50,000 students and students, Kerameos pointed out.

The budget of the Ministry of Social Affairs for the student allowance amounts to 75 million euros, with an increase of more than 25 million euros.

Special arrangements have been launched, Kerameos stressed, for students and students at the three marginal universities, Aegean, Western Macedonia and Democritus Thrace, as the criteria for beneficiaries are expanded from 30,000 to 40,000 euros family income.

As for the student residences in five regions of the country, Thrace, Western Macedonia, Thessaly, Western Attica and Crete, more than 8,150 beds will be created through PPP at a cost of more than 540 million euros. Construction is scheduled to start in 2023 and to be completed in 2027.