The Ministry of Social Cohesion is moving forward with a series of drastic interventions through the National Strategy for Housing Policy.
High on the agenda are, among other things, increasing the housing supply, the utilization of vacant properties, the strengthening of social and affordable housing, facilitating access to homeownership for young people, as well as supporting renters through targeted measures.
At the same time, sources at the ministry cited by ERT are responding to reports linking the National Strategy for Housing Policy to the possible imposition of rent caps, categorically clarifying that “neither does the Strategy include such a proposal, nor is the Government considering or intending to proceed with any form of administrative regulation or cap on rental prices.”
As reported “the National Strategy for Housing Policy, which has been put out for public consultation, constitutes the first comprehensive roadmap for addressing the country’s housing challenges. It reflects the current situation in the housing market, analyzes the trends and challenges observed in Greece and Europe, and establishes a coherent framework of guidelines for the development of housing policy in the coming years.”
Regarding the issue of rent caps, the Ministry of Social Cohesion and Family clarifies: it is not considering and does not intend to implement any system of administrative rent setting or rent caps.
“International experience from countries that have adopted interventions of this type is complex, and the results are often controversial. In several cases, side effects have been observed, such as a reduction in the supply of rental housing, a halt to residential investment, and a deterioration in the quality of the available housing stock.
“Furthermore, the Greek housing market exhibits specific characteristics that make such interventions even more problematic. It is telling that the average declared rent in tax administration data remains at levels that do not fully reflect the actual state of the market, a fact that demonstrates the extent of the phenomenon of underreporting rents. Under these circumstances, the imposition of administrative restrictions could further strengthen the informal economy rather than address the problem of affordable housing.
“In any case, the introduction of rent control in the context of social housing should not be confused with the imposition of rent caps on private properties.
The government’s housing policy focuses on increasing the housing supply, utilizing vacant properties, strengthening social and affordable housing, facilitating young people’s access to homeownership, and supporting renters through targeted measures. “Addressing the housing crisis requires structural interventions that increase the available housing stock, not administrative price controls,” they note.
