On Tuesday 9 April, Cyprus launched a new electronic platform, prositistegi.cy, through which property owners can apply for the government's 'Repair and Rent' programme.
The initiative aims to increase the supply of affordable housing by rehabilitating unused residential properties across the country.
The scheme offers grants to owners of empty properties. The condition for receiving the grant is that the renovated property is subsequently rented out at an affordable price set by the government.
It should be recalled that the 'Repair and Rent' programme, for the implementation of which 25 million euros have been allocated, aims to bring 1,000 empty housing units on the affordable rental market in Cyprus within two years. The programme is open to both natural and legal persons.
The main conditions for receiving cash grants are:
- The property must have been empty for at least one year prior to the deadline of 1 October 2023;
- The property must be at least 15 years old;
- the property consumes less than 200 kWh per year, as evidenced by electricity bills.
The maximum subsidy under this scheme is set at €15,000 for one-bedroom flats, €25,000 for two-bedroom flats and €35,000 for three-bedroom flats. It is important to note that under the terms of this scheme, owners are prohibited from renting their homes to relatives within the first degree of consanguinity. In addition, the property must be legally registered. In the case of joint ownership, all parties must agree to participate in the scheme.
The grant can be used for major or cosmetic repairs, replacement of utilities, installation of energy efficient systems, and to improve the safety and comfort of the dwelling. The scheme pays particular attention to energy improvements - replacing old windows, installing solar panels, insulation and heating systems.
Tenants under this programme can be citizens who do not own their own homes.
This requirement applies to all future tenants, not just the person who signs the lease. At the same time, the income level of the beneficiaries is also taken into account when allocating rental properties.
Thus, to be able to rent affordable housing under the Repair and Rent programme, a single person's salary should not exceed 25,000 euros per year, a couple or parents with one child - 45,000 euros, a family of three - 50,000 euros, a family of four - 55,000 euros, a family of five or more - 65,000 euros.
All applications from both owners and tenants will be assessed by the Cyprus Organisation for the Development of Land Resources (KOAG). This agency will also oversee the implementation of the project.
The main objective of the initiative is to revitalise the rental housing market, provide low and middle income citizens with the opportunity to rent quality properties, and bring empty properties back into circulation, especially in urban and suburban areas where rents are traditionally very high.