Interior minister backs affordable housing scheme across EU

Interior minister Constantinos Ioannou on Wednesday said Cyprus was ready to support and actively contribute to the European affordable housing plan.

Speaking after the presentation of the plan by the European commission, the interior minister said the initiative marked the first coordinated attempt by the EU to confront the crisis that now affects almost every member state.

Central to the plan is boosting construction through higher productivity and innovation, alongside reforms to simplify licensing procedures.

He remarked that Cyprus has already taken steps by streamlining planning permits, arguing that bureaucratic delays remain one of the main barriers.

The plan also focuses on mobilising investment, with the proposed creation of an investment platform aimed at attracting both public and private capital into housing projects.

Ioannou said Cyprus welcomed this approach, stressing that national budgets alone could not meet the scale of demand now facing European societies.

The commission is also considering legislative measures that could limit the number of nights properties are offered on platforms such as Airbnb.

The plan includes targeted support for groups facing the most acute housing problems, including young people and low to middle-income households.

Ioannou affirmed that Cyprus was prepared to play an active role in shaping the next steps of the plan during its upcoming presidency of the EU council.

He added that housing policies, already implemented domestically, could inform broader solutions.

Prior this week, President Nikos Christodoulides unveiled a scheme to construct 500 housing units on state land islandwide, at an estimated cost of €70m.

The units will be rented out at affordable rates to young families and single people.

Seven housing programmes have already been launched, yet little data has been published on who has benefited, the rents charged, or the cost to the taxpayer.

Other schemes, including grants of up to €50,000 for young families, have been oversubscribed.

According to data cited by the European economic and social committee, almost 1.3 million people across the EU are homeless.

Eurostat figures show that between 2010 and 2025 house prices rose by more than 60 per cent on average, while rents increased by around 29 per cent.

More than 16.5 million households spent over 40 per cent of their income on housing, a level widely considered unsustainable.

Overcrowding remains widespread, with 17 per cent of Europeans living in overcrowded homes in 2024.

The commission estimates the EU needs more than two million new homes each year and believes up to €375bn could be mobilised by 2029.