The government is preparing a major new intervention aimed at increasing the supply of available housing through a new «Renovate» programme, which is expected to be presented shortly and to begin in June.

The aim of the new scheme, which will subsidise broader home renovation works rather than focusing only on energy upgrades, is to reopen thousands of homes that currently remain closed and bring them back onto the market either for rent or for sale.

The programme forms part of a wider strategy to increase housing supply, as studies have shown that this is the most effective way to address the acute housing problem facing Greece and most other European countries. Increasing allowances may ease costs for households, but it also strengthens demand and adds further pressure on house prices.

The key points of the «Renovate» programme

The new «Renovate» scheme is expected to have a total budget of around €500 million and will provide significantly higher cost coverage compared with previous programmes. The level of support will increase depending on the number of children in the household, while higher income thresholds are also expected to apply.

As a result, the subsidy could cover up to 90%-95% of renovation costs, with basic funding of up to €36,000 per home.

By comparison, in the previous cycle of the «Renovate» programme, eligible costs stood at €10,000. Under the new plan, funding will be increased by €5,000 for each child, meaning that a family with two children could receive up to €46,000.

According to the current planning, the programme will apply to older homes of up to 120 square metres. The level of funding will be calculated with a maximum ceiling of €300 per square metre.

The two stages of the programme

The programme will be implemented in two phases. In the first phase, which is scheduled to begin in June, checks will be carried out to select the properties that meet the eligibility criteria.

In the second phase, expected to begin in September, applications will be submitted by the owners of properties that have passed the initial screening stage.

According to information, priority in the first phase will be given to assessing the eligibility of vacant homes, before cases involving already occupied properties are examined.

In this particular scheme, support will focus more heavily on renovation costs and less on energy upgrades, as the main objective is to increase the immediate supply of suitable homes on the market.

It is estimated that 80% of the interventions will concern renovation works and 20% energy upgrades.