Housing crisis ‘profound impact’ demands European response

The housing crisis is “no longer a marginal issue”, but one with a “profound impact” and as such demands a European response, Interior Minister Constantinos Ioannou said on Wednesday evening.

Speaking to journalists accredited in Brussels, who are currently visiting Cyprus, Ioannou said the housing crisis affected social cohesion, economic resilience, demographic evolution, worker mobility and, ultimately, the faith of the people in institutions.

“Without access to affordable and decent housing, we cannot attract and retain workers, support families and strengthen Europe’s competitiveness,” Ioannou pointed out.

Although housing policy remained a national responsibility, the causes of the crisis transcended borders, he added.

“It is now clear that a coordinated European response is required and […] addressing affordable housing is not a social expense, but an investment in the resilience and future of Europe,” the minister said.

Cyprus’ EU presidency will be promoting the four pillars for affordable housing during its term, in line with the European Affordable Housing Plan.

These pillars focus on increasing supply by removing obstacles and expediting permits, mobilising public and private investment, direct support with measures against energy poverty, and the targeted protection of vulnerable households.

Ioannou acknowledged that “short-term rentals are putting pressure on the market”, as people opt to rent out property for tourism rather than permanent residence.

The minister referred to measures taken in Cyprus, such as reducing the time taken to issue permits from 18 months to 40 days in some cases, while at the same time increasing the building rate to provide additional affordable housing.

“If we don’t increase supply, we are just raising prices. If we limit ourselves to just providing financial support to people without increasing the supply of housing, we will just push prices even higher,” he said. 

Ioannou pointed out that “the solution lies in the right balance: more homes on the market and targeted assistance to those in real need”.

At a European level, he said, the exchange of practices is crucial, however “solutions must be adapted locally”.

“There cannot be a single solution for everyone, as every country and every city has different administrative structures and needs,” he explained, adding that “the European approach will act as an umbrella, providing tools and guidelines so that each city and state can implement the policies that fit their own context”.