Al. Tsipras: Four-pronged plan to tackle the housing crisis

LAST UPDATE: 21:15

The president of SYRIZA-PS, Alexis Tsipras, launched an attack on the government, calling it a “bankruptcy faction” and blaming it for the energy and housing crisis.

Speaking at an event of his party about the housing problem, he said: “With the faction that bankrupted the country, we have very big differences. But the biggest one is probably the way we prioritize economic and social priorities. Our commitment to the public interest. The commitment them to private interests”.

He argued that since August 2018 “when we put into practice our commitment and debt to the Greek people, achieving the country’s exit from the memorandums, Greece took many steps back. He blamed the government for the negative firsts in inflation, electricity bills , in fuel prices, in basic necessities. “Whose responsibility is the negative lead in wages and incomes? Whose responsibility is the negative lead in the accuracy of the roof?”, he characteristically asked and added:

“In this country where the paycheck ends in the 3rd week and the energy poverty returns more acutely, the government is not only passively watching the explosion of rents but also cheering from above for the rodeo in the short-term rental market, Airbnb. Considering it, investment A phenomenon that contributes to the growth perspective of the Greek economy. When a few economics are gained from economic activity but the vast majority loses, we consider it development. We consider it profit. and antisocial. ”

A four-pronged plan to address the housing crisis

A rent allowance of up to 350 euros for 150,000 young people under the age of 44, a block on funds for Airbnb, a housing bank for low rents, a new bankruptcy law, are among the measures committed to by the president of SYRIZA-PS, Alexis Tsipras.

The president of SYRIZA-PS described in dark colors the social reality experienced by the majority of society due to the accuracy crisis, while he developed his party’s strategy for stopping the housing crisis.

He attacked the government because it favors a speculative policy of funds and the uncontrolled development of Airbnb, leaving the citizens defenseless. “Greece is the only country in Europe where 40% of the population, 1.7 million households in a total of 4.1 million, is in a dire housing crisis today,” he said: “Why give more than half of it. of their income for housing needs, for rent or for a mortgage payment, for electricity, heating or cooling and utilities. To have a measure of comparison, the corresponding figure in the EU is 9%. And second worst, after Greece, is Bulgaria with a rate of 17.5%”.

He referred to the accuracy crisis in principle and described the possibilities for immediate relief:

– With the ceiling on the wholesale and retail electricity market.

– With the restoration of the public role of PPC.

– With the end of producers’ profiteering.

– By reducing the VAT on fuel and VAT on basic consumer products.

-By writing off part of the pandemic debt.

– With the increase of the minimum wage to 800 euros.

Continuing, he said that “corresponding direct interventions are also planned to deal with the energy poverty of households with accumulated electricity, gas, rent debts, with electricity supplies cut off, who are also facing a food crisis. Our plan, for example, provides:

-The free reconnection of electricity

-The supply of free electricity up to 300 kw per month and per household, with a prepaid solidarity card for the purchase of food and basic items.

Mr. Tsipras presented his strategy for stopping the housing crisis which moves in the triptych: Immediate relief, restructuring and perspective.

His Plan, as he mentioned, moves along the following lines:

* The first axis of the plan concerns the treatment of non-performing private debt of households with a guarantee of the residence, said Mr. Tsipras and explained: “Of the 4 million households, 3 million have their own home and of these 23% have loans and mortgages. There is an immediate and urgent need to prevent a huge wave of selling off the people’s property, the likes of which the country has never experienced, even in the most difficult memory years of the great crisis”. To prevent the risk of real estate changing hands, his plan provides for:

– The repeal of the extremely anti-social Bankruptcy Law passed by the ND government

– The restoration of the protection of the main residence of the popular strata and the middle class by subjecting it to both extrajudicial and judicial proceedings, and the binding nature of the arrangements for creditors and especially for Banks. For vulnerable categories of our fellow citizens, the granting of regulation will be accompanied by a program to subsidize the repayment of installments.

-Additionally, for regulated household loans, we are planning a major innovation: The creation of a Special Restructuring Fund within the Development Bank that will subsidize under conditions part of the regulated debt that the debtor cannot service.

* The second axis of our Plan concerns the control of Airbnb activity which is one of the main causes of the continuous increase in purchase prices and house rents and the creation of a new real estate bubble. In the last three years, the rapid increase in real estate purchase prices and rents reaches an average of 32%. The recent increase in property values ​​by 20% since 1/1/22 in 55% of the country’s regions, as well as the increase in the cost of building new homes, reinforces the real estate bubble, i.e. overpriced rents and purchase costs, said the chief of the officer opposition and added: That is why our plan foresees:

-The ban on Airbnb activities for legal entities, for reasons of public interest.

-The liberalization of Airbnb activity only for natural persons and up to 3 properties per owner and manager.

-The introduction of tax breaks for mixed tenancy, i.e. 8-9 months as residence or student housing and 3-4 months as airbnb.

* The third axis of the plan is the protection of young people’s right to an autonomous and independent life. “Our goal is to regain the right to housing for young people, especially young couples aged 24-44,” he stressed.

The Plan provides for:

-The doubling of both the allowance and housing allowance beneficiaries, aged 25-44.

Thus we increase the subsidy from 70 euros to 140 euros per month for a household with one member and from 175 euros to 350 euros per month for a household with 2 children.

Correspondingly, we are increasing the income criteria. From 7,000 euros to 14,000 for subsidizing a household with one member. And from 17,500 euros to 35,000 euros for the subsidy of a couple with 2 children.

The total number of beneficiaries will reach 150,000 households aged 25-44. With a total additional cost of 255 million euros/year.

* The fourth and most comprehensive axis concerns the New Housing Policy and ensuring decent housing for the social majority.

For this purpose, the Plan provides for:

The Creation of a Housing Bank by:

a) vacant, unused public buildings, municipalities, the Church and non-profit organizations of public interest (associations, foundations, endowments, etc.) for purchase or rent.

b) vacant abandoned private buildings in various municipalities (residential or other uses, as long as they are easily converted into residential) for purchase or rent. Greece has the highest percentage of vacant buildings among the countries of the European Union

c) mainly from houses and apartments of private individuals who will make them available to the Housing Bank for rent for 3, 5 or 8 years thanks to an attractive package of incentives, which will be given to them by the state. Which includes:

– Tax reductions, abolition of rent tax and ENFIA

‒ Guaranteed rent payment 12 months a year

‒ Energy upgrade of property and energy certificate

‒ Fire safety and legal cover

‒ Guarantee of good condition and renovation of the property after the end of the concession

He went on to explain that “the core of our plan is the third case, precisely because it does not require a lot of time and expense to rehabilitate and can actually be the direct regulatory factor in holding down rents and controlling the real estate bubble.

Our plan envisages the Digital Management and Disposition of Affordable Housing (AFH)

a) Establishing a framework law for the roof and central structure of the State at the level of the Deputy Ministry in the Ministry of Labor and Social Affairs.

b) Creating a digital housing inventory observatory that will operate in every municipality of the country and in the central structure of the state and includes housing registers, registers of beneficiaries and matching between beneficiaries and housing”.

The roof, said Mr. Tsipras, is a matter of enlisting and coming together of forces that study, experience and know the phenomenon.