by admin Rents remain high, mainly in the country’s urban centers, according to the latest data from the real estate market. According to the Greek Statistical Survey’s (ELSTAT) latest data on inflation, housing costs for citizens has increased by 35% within a year, due to the increase in prices for house rents, electricity, gas, heating petrol and solid fuels. On the issue of high rents, Lefteris Potamianos, president of the Athenian Real Estate Agents Association, recently spoke on the “MEGA Weekend” morning show. Mr. Potamianos said that rents in recent years have increased by 30% to 35% and that there is a big problem for students who will be looking for housing this year, as there are no houses available.
Far up high rents: 3 reasons
When asked about the low availability of rented properties, a factor that pushes rents to high prices, Mr. Potamianos stated that there are three reasons for this phenomenon: “It’s not just the Airbnbs. First of all, we must note that in the last few years (from the 2010 crisis onwards) no new houses were built, with the consequence that no new properties were not added into the available pool for rentals. The second reason is that in 2007 home ownership in the country was at 84%, while today it is at 73%. Those 11 percentage units describe people who no longer own their own home and are renting or looking to rent.” According to Mr. Potamianos, the third factor is indeed the Airbnb-style short-term rentals, which ‘remove’ potential long-term properties from the pool of available long-term rentals. Lefteris Potamianos also said that high rents and energy prices are an explosive cocktail, reiterating that student families will struggle this year “as the rents today have no similarities with the rents students used to pay 3 or 4 years ago”.
One in two is struggling to pay rent
It is noted that according to a recent survey, one in two people has difficulty or is unable to pay rent and 76.9%, after paying their housing expenses, barely manage their finances till the end of the month; they normally cut back on their payments or receive financial support from third parties. The above percentage derives from a survey conducted on behalf of the Institute for Research and Social Change Eteron, which highlights the stress, insecurity and uncertainty of renters in Greece. The survey was conducted between May 24th and June 3rd, 2022, by the above company on a sample of 1,007 renters, aged 18 and over, throughout Greece.
42.3% of respondents have noticed rent increases in the last two years, while rents in Attica have increased more than the rest of Greece. The main problems faced by the respondents in terms of housing are the expensive electricity and operation costs (65.5%), the expensive rents (34.8%), difficulties in finding affordable properties to rent (28.9%), poor housing condition (26.4%) and the inadequacy of heating and cooling devices in their homes (21.9%). 47.8% of tenants said they have difficulty in paying their rent. Also, 61.7% reported that they cut back on other basic needs and 15.2% said that in order to cover their other basic needs, they receive financial support or borrow money from third parties. Housing costs for about two in three people are covered by their own work, while 33.1% rely systematically or occasionally on family/friends, and finally, 12.3% relies on benefits and other public policies. One in five people receive housing benefits. There are many reasons why finding an affordable home is difficult. The main reasons mentioned in the survey are high cost of renting (49%), the absence of price control and unreasonable demands of the landlords (45.3%), the general decrease in the population’s income (40.5%), the increases on standard housing costs (25.7%), short-term Airbnb rentals (24.1%), unemployment (21.8%) and the absence of a public social housing policy (21.3%).
“A systematic support policy is necessary, targeting broad population groups”
Highlighting good practices applied in other European countries, the Eteron Institute refers to the rent control and regulation system in Barcelona and the Netherlands; the regulation of short-term rentals in Austria; mediation services between landlords and tenants and incentives to landlords and investors in France; and finally, the creation of tenant associations in Germany. The Eteron Institute points out that concerted and decisive public intervention and institutional regulation is necessary to keep rental prices low and ensure access to affordable rental housing for all. Public intervention cannot be limited to emergency measures and only for specific groups of the population, i.e. the most extremely deprived. A systematic support policy is necessary, targeting broad population groups. The director of Eteron, Gavriil Sakellaridis (who is also a SYRIZA MP), during a relevant press conference, he described the issue of housing and rentals in particular as “an important thorn in society”. He pointed out: “In reality, it is a ‘silent crisis’, which may not be expressed in terms of extroversion, but it largely concerns households; it is the subject of discussion in families and groups, and determines both family budgets and the mental health of everyone”. He finally added: “the time has come for the issue of housing and rents to come forward in terms of public policy and for the state to stop deflecting it”.
Among other things, the Eteron Institute suggests subsidising rents and housing costs to a wider range of beneficiaries, controlling and regulating rents as a direct intervention to contain prices, regulating short-term rentals and controlling investments in order to limit quick and opportunistic transactions. Also, it suggests the support of social and affordable housing,through a supported (state) housing agency and/or an intermediary (state) agency, and the adoption of incentives for landlords. It highlights the positive experience of the ESTIA asylum seeker housing program and finally, proposes the re-construction of social and affordable (state) housing. The poll was conducted as part of Eteron’s project “High Rents”.
Sources:
https://www.iefimerida.gr/ellada/enoikia-giati-einai-sta-ypsi-liga-akinita-3-logoi