Zaharaki characterised the measures as a “continuation” rather than a fresh start, referencing earlier programmes such as “Renovate to Rent”—widely regarded as ineffective. The newly announced initiatives focus primarily on benefits and loans rather than introducing structural reforms to curb rent inflation or address unethical landlord practices.

Housing costs highest in EU

Greece continues to hold the unenviable position of having the highest housing costs in relation to disposable income within the European Union. Eurostat data for 2023 revealed that over 35% of household income was spent on housing, a figure that has increased since 2022.

Despite this, the government’s housing plan lacks substantial interventions to tackle rising rents head-on.

My Home II: Limited scope, limited beneficiaries

The centrepiece of the government’s new plan is ‘My Home II’, a housing loan programme aimed at helping individuals purchase their first home. The scheme offers 50% interest-free loans funded by the Recovery Fund, with the remaining portion coming from interest-bearing bank loans. For families with three children, the programme promises 75% interest-free loans.

However, the programme is limited to just 20,000 beneficiaries, raising concerns about its real impact on the broader population. Even with the expansion of income and age eligibility—covering individuals or couples aged 25 to 50 with incomes of up to €28,000 for couples—its scope remains narrow.

Papathanasis presented these measures as an effort to increase homeownership, particularly among young people, but there was little mention of how the programme would address runaway rents or broader housing affordability issues.

Limited focus on rent reduction

Although the government highlighted its aim to reduce housing costs, it did not provide a clear strategy for reducing rents. Instead, the emphasis was on homeownership and renovating homes for rent. The programme will continue to focus on upgrading existing housing stock with financing from the Recovery Fund, but with little detail on how this would translate to lower rents for tenants.

Social housing: Promises with little clarity

Another part of the plan includes social compensation schemes and the construction of public housing on state-owned land. The government intends to utilise a selection of 15 property plots for the construction of rental flats. Tenants will be selected based on predefined social criteria, with the possibility for beneficiaries to buy their rental homes in the future.

The ‘Coverage’ programme, meanwhile, aims to provide housing for vulnerable social groups, including single-parent families and large families on low incomes. While it promises to cover rent for three years, critics question the long-term sustainability of this initiative.

Continued neglect of the broader housing crisis

Although the government has announced the creation of new housing stock for public employees and vulnerable populations, questions remain about how these piecemeal efforts will address the larger housing crisis. Additionally, there has been no significant discussion about regulating rent increases or tackling unethical practices by landlords.

Zaharaki pointed to the digitisation and inventory of public properties as a way to unlock more housing opportunities, yet the specifics remain vague.

Allowances for seniors and students

The government has also introduced a housing allowance for uninsured seniors, granting up to €362 per month to help cover rent for individuals over 67 who are not receiving pensions. Similarly, student accommodation allowances will increase to €2,500 for those studying away from home.

These measures, while helpful for targeted groups, do not offer a comprehensive solution to Greece’s housing affordability crisis.

A critical response

While the government presents these measures as a response to the growing housing concerns, the plan stops short of addressing the root causes of the crisis—namely, rising rents, lack of affordable housing, and exploitative landlord practices. The announcement of new loans and benefits may alleviate pressures for a small segment of the population, but without a serious strategy to control rents and ensure long-term affordability, the housing crisis will certainly persist.

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