The Thessaloniki Renters’ Union has released a statement criticising the government’s newly announced “rent refund” measure. They argue that presenting the return of one month’s rent as a “housing benefit” for tenants is misleading. In a deregulated and uncontrolled rental market, the measure effectively subsidises the usual profiteers once again.

Greece has recently recorded a staggering primary budget surplus of 4,8 % for 2024 – almost twice the country’s post-bailout austerity targets. The primary surplus alone surged to €11.4 billion, up from €4.5 billion the previous year. Just hours after the release of these striking figures, Greek PM Kyriakos Mitsotakis announced a series of measures aimed at redistributing a portion of the excess surplus in the form of “permanent social support” worth €1 billion – less than a tenth of the primary surplus and around a seventh of the surplus overshoot. Mitsotakis announced on Tuesday, 22 April, that the government would return to low-income tenants one month’s rent per year.

According to the Union, after tenants receive the refunded rent in November, a sharp rise in rental prices can be expected as early as December – or even sooner. Landlords, a small segment of the population who profit from the housing crisis, are likely to seize the opportunity to “regulate” the market themselves to secure the lion’s share – just as happened recently with the launch of the “My Home 2” housing scheme, which spurred speculation in the property market.

The Union stresses that:

“The only housing policy that can make a real difference must stand on two pillars:

  • First, curbing profiteering through effective rent controls;
  • Second, de-commodifying a substantial portion of the housing stock by creating a robust public housing sector – offering rental properties at prices significantly below market rates.”

“These models already exist. Our proposals are well-documented. What’s missing is the political will to put the needs of the many above the profits of the few.
Housing policy isn’t pocket money. It’s not a patch-up job. It shouldn’t be conditional on budget surpluses. It’s a foundation of wellbeing and dignity – and it’s a right we all share, unconditionally.”

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