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The launch of the implementation of two of the key pillars of the Government's unified housing policy was marked by today's approval by the Council of Ministers of the detailed guidelines of the "Built to Rent" scheme on private land and the Revised Planning Incentives. As noted in statements after the Cabinet meeting, the Minister of Interior, Mr. Constantinos Ioannou, pointed out that the objective of the unified housing policy is to gradually increase the housing stock to be made available for sale or rent, with an emphasis on offering affordable housing options to citizens in need.
Built to Rent Project on private land - An innovation for our country
Referring to the Built to Rent Project on private land, Mr. Ioannou described it as innovative for Cyprus and pointed out that, through the Plan, an additional free building rate of up to 45% of the current rate will be offered, combined with tax incentives and reliefs. "It is attractive for entrepreneurs who are active in the real estate development sector and the aim is that through the additional apartments that will result from the increase in the building rate, they will be offered for at least six years at an affordable rent," he said, recalling that the affordable rent is reduced by 30% per municipality or community.
Revised Planning Incentives
The Revised Planning Incentives involves the granting of a free increased building factor of up to 45% of the current one, with an obligation on the part of land developers to make 25% of the additional units generated by the increased building factor available for sale at affordable prices.
Socially-oriented housing policy
Mr. Ioannou stressed the fact that by granting the free building coefficient, which is an asset of the State, "we show that we are strengthening the welfare state and offering options and solutions to our compatriots who are currently facing problems and difficulties in meeting their housing needs." The Interior Minister said that as early as tomorrow, interested parties will be able to apply for participation in the Schemes.
Asked about the "Renovate-Rent" Scheme, the Minister noted that a detailed guide to the Scheme and the date of its implementation will be published in January. He also expressed confidence that there will be interest in all the Housing Policy Plans because they are the result of consultation, study, adoption of best practices from other countries and coordination with all private and public sector stakeholders to make them as effective as possible.
In response to a question whether a target has been set for the number of housing units expected to be produced, the Interior Minister explained that over the next three to four years, the need is for about 6,000 to 7,000 additional housing units. However, this is relative and depends on the interest that will be generated. At the same time, he reiterated the position that the Plans announced are not static and conveyed the Ministry's readiness to make improvements where and when deemed necessary.
Urban Incentives Plan for Business Recovery
The Council of Ministers today approved the extension for another year of the Urban Incentives Plan for Business Recovery, which was enacted in 2013. The Plan has been revised with amendments that strengthen it to better reflect the policies of the new administration. The extension was decided on the basis of an assessment of the positive results of the Plan and its impact on the economy with large tourism developments.
In this context, the percentage to be paid as compensation is increased across the board for all developments without exception to 50% from 10% to 20% which was previously the case. This amount will be deposited in a Special Fund set up to help implement the Government's housing policy. According to Ioannou, as part of the simplification of the licensing process, permits will be valid for two years instead of one, to enable land developers to prepare what is necessary for a complete and proper application. A correct and complete application will significantly reduce the time required by the Planning and Zoning Department to complete their assessment, thereby reducing delays.
(MKY)
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