Housing crisis: Details of all the programs coming up

The Government and the Ministry of Social Cohesion and Family, in their efforts to provide solutions to the housing crisis, have taken initiatives to ensure affordable and quality housing. Especially for young couples, families, and vulnerable categories of our fellow citizens.

Programs that prioritize social cohesion through the provision of the good of housing, the reduction of inequalities, and the utilization of thousands of vacant homes will generate income for their owners.

Basic programs include “My House I”, to be followed in the new year by the expanded “My House II”, as well as “Renovate – Rent”, in which major improvements are expected soon.

The programmes

My House I & II

The program – with a total budget of €1 billion – “My House I”, through which, by the end of the year, 9,155 new couples (aged 25-39) will have acquired their own home, as some 7,500 contracts have already been concluded and some 7,200 disbursements made, has shown particular dynamism and acceptance by those concerned, and that is why the government has decided to proceed next year with “My House II”, with expanded criteria, a budget of €2 billion and a total of 20,000 beneficiaries.

Specifically, the new improved “My House II” program increases the range of beneficiaries, as the beneficiaries are expanded, with beneficiaries being not only those who met the income criteria in 2023 but also those who met the average criteria over a three-year period.

Major changes to the program:

The age limit is increased to 50 years, as well as the purchase contract, which will reach 250,000 euros and the loan 190,000 euros. Thus, individuals or couples (25-50 years old), with an income of 20,000 euros for singles, 28,000 for couples plus 4,000 for each child, and 31,000 for single parents plus 5,000 euros for an additional child, can acquire a house up to 250,000 euros and 150 square meters, built until 2007.

The loans will be 50% interest-free, financed by Recovery Fund resources and the remaining 50% will be an interest-bearing bank loan. In the case of three-parent families, the interest-free loan will go up to 75% and the interest-bearing loan will be limited to 25% and will apply to 20,000 beneficiaries.

The pre-approval, which each applicant will receive in the first stages, will not expire a few months later but will remain in force until the available funds are exhausted.
There will be no need for the objection process and all applicants will have the maximum possible time to finalize the signing of the contract (in the previous program, the bank had to check within 60 days of the borrower’s application whether the requested criteria were met). – The 150 sqm limit no longer includes ancillary spaces such as storage rooms and parking spaces. There are currently three schemes in force concerning subsidies for home renovation. “Renovate – Rent 2024” is already open for applications, while the “Upgrade My House” programs are expected to be activated shortly.

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Renovate – Rent

Last month, the Ministry of Social Cohesion and Family and the relevant ministries announced two major changes to the Renovate – Rent renovation subsidy program, for which there has been little interest to date, as it has received about 2,000 applications and 985 of them have been approved.

The first change concerns the increase in the subsidy, which now stands at 60%, with a maximum amount of 8,000 euros, and the second concerns the maximum amount for renovation increased to 13,000 euros, up from 10,000 euros. The program enables owners to renovate properties on the basic condition that the property is then made available for rent.

The other criteria of the program remain unchanged. In particular, the beneficiaries must have ownership or usufruct of the property equal to or greater than 50%, the family income must not exceed 40,000 euros and the surface area of the property must not exceed 100 square meters.

The program is for beneficiaries who have an annual family taxable, actual or imputed, income not exceeding 40,000 euros and have real estate whose total value does not exceed 300.000 euros, the property has not been declared as a primary residence, has not been declared as rented and is declared as empty in the E2 form accompanying the income tax return for the last three years, and the beneficiaries have not received a subsidy for an energy saving or renovation program for a property owned by them in the last five years and have not been included in subsidized energy saving programs for any of their properties.

Under the program, property renovations must be completed within six months for properties to be ready for rental. If the rental is not carried out, penalties are foreseen, such as the reimbursement of the subsidy granted for the renovation.

The total cost of financing the “Renovate Rent” program is 50,000,000 euros and is borne by the regular budget of the Ministry of Social Cohesion and Family, distributed over the fiscal years 2024 and 2025.

“Upgrading my House”

The new “Upgrade My House” program, which will come into effect in January 2025, aims to support citizens in energy upgrading and renovating their homes by offering interest-free loans with no age or income criteria. This broad approach means that all citizens will have access to the program, regardless of income or age.

The scheme covers a range of essential home improvement works, including:

Thermal insulation
Green roof
Window replacement
Installation of solar panels
Installation of photovoltaic systems
Heating and cooling systems

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