Tenants to save up to €400 a month with government’s new housing policy

A tenant can expect to save up to €400 with the government’s new affordable rent scheme, which is expected to bring some much needed relief to struggling households.

Presenting the new unified housing policy, Interior Minister Constantinos Ioannou said that involving the private land development industry will help reduce the time required to complete the projects, so that the new affordable units are ready for rent or purchase the soonest possible.

The new rent rates will be defined by the municipalities and will depend on the type of apartment, based on the market rent (average market price reduced by 30%).

The calculated average affordable rent will be the upper limit for affordable housing purposes.

When it comes to purchasing an affordable residence, the price will be determined by the Cyprus Land Development Corporation, based on the construction cost price which will be adjusted on an annual basis.

A table was presented during the announcement providing comparative data for each district, showing how much tenants can expect to save depending where they are.

For a two-bedroom, 85 sq. m. apartment in the Strovolos Municipality (Nicosia), rent is expected to drop from the current average of €825 to €578.

In Ypsonas (Limassol), it will go from an average of €1,100 to €700 – that is a €400 saving.

Rent in the Paphos district is estimated to go from an average of €750 down to €525 per month.

In the Municipality of Larnaca, rent for a two-bed, 85 sq. m. flat is expected to go from €550 to €385.

In Paralimni, the average rent rate is expected to decrease from €525 a month to €368.

Meanwhile, a scheme by the Cyprus Land Development Corporation to build 138 affordable housing units in Agios Nicolaos, Limassol, has been brought forward, with construction work slated to begin in July 2024. The state is sponsoring the scheme with €16m over a period of four years.

Incentives are also being offered to renovate and rent out idle residential units, provided that the owners charge affordable rent for at least four years. Another incentive reduces income tax by 60% on affordable rental income, for the period it remains affordable.

(Source: InBusiness)