TenLaw 3 rd Workshop Tarragona, Spain 18-19 June 2013

1. TenLaw 3rd WorkshopTarragona, Spain18-19 June 2013 Country Presentation on Cyprus Thomas Konistis Attorney-at-Law LL.M (Athens Bar) Team Leader: Professor Elena Bargelli Faculty of Political Sciences University of Pisa, Italy.

2. Cypriot Social Housing Policy(1/4) • Great activity in the field of social housing policy, which had always been considered as one of the State’s main aims. • Cause: The Turkish evasion which took place at Cyprus in 1974 signaled a dramatic increase as to the housing needs of the population. Turkish troops occupied 37 % of Cypriot national territory while approximately 200.000 Greek Cypriots were obliged to leave their homes and move to the ‘free’ part of the country. • The first initiatives of Cypriot social housing policy are traced in 1975 in cooperation with the United Nations Organization. • Today, more than17.000 Cypriot households benefit from the different housing schemes.

3. Cypriot Social Housing Policy (2/4) Housing Scemes adressing the entirety of the Population • Unified Housing Plan • Housing plan motivating the cohabitation of first degree relatives • Housing plan for the amelioration of living conditions of persons eligible for public financial aid • Plan for the provision of land to low income families • Rent subsidization for repatriated Cypriots • Medium-income housing scheme • Low-income housing scheme • Low Income housing scheme – highland and remote areas

4. Cypriot Social Housing Policy (3/4) Housing Scemes for Expatriated Persons • Provision of housing unit in Expatriated Housing Blocks • Provision of State land for self-housing • Financial grant for the purchase of a house or of an apartment or self-housing on owned land • Subsidy of rent for expatriated persons • Housing in Turkish-Cypriot dwellings

5. Cypriot Social Housing Policy (4/4) • Different income and social criteria apply to the above schemes. • Their basic common feature is that all of them have the form of subsidization. • Home ownership is clearly favored against rental tenure through the different social housing policy schemes.

6. Property of Housing(1/2) • Real Property Right of Ownership. It affords the owner all powers over the thing, while precluding any infringement of any third party thereon without the owner’s consent (Cap. 224) • Most preferred type of housing tenure. 68,6 % of Cypriot households inhabit owned houses. • Home ownership is also regarded as a socially superior housing tenure, due to the ‘security’ afforded to the owner and the welfare status that is symbolizes.

7. Property of Housing(2/2) • Financing through own savings, inheritance and mortgaged based loans. • Mixed work contract: Very common way of financing home ownership. The owner of a plot of land assigns the contractor with the construction of a condominium, with the latter’s own expenses. In return, the contractor gets the majority of rights over the land, which respectively correspond to a number of dwellings. • Condominiums:Regulated as a special type of ownership known as ‘Common Ownership’. An ‘independent unit’ (usually an apartment or an office) can be the object of an absolute and distinct ownership right, while said right will be combined with common ownership over the common parts of the condominium.

8. Private Rental Market(1/2) • Tenancy is defined as the contract whereby the landlord assigns the tenant with the absolute use of a thing for a certain period of time, whereas tenant undertakes the obligation to pay the agreed rent. • Personal contract regulated by the provisions of Cap. 149. • Cypriot Law does not provide for any distinction between rental tenures with and without a public task, • Rental tenure is socially regarded as an inferior housing tenure, due to the feeling of living in someone else’s property. Mostly chosen as a temporary solution.

9. Private Rental Market(2/2) • Less popular tenure type, compared to home ownership, as 18,8 % of Cypriot population inhabit rented homes. • Tax reliefs: Cypriot taxpayers are not entitled with the right to deduct rent premiums paid from their taxable income.

10. Housing Quality and Supply Sufficiency (1/3) • Housing quality is depicted in the following charts:

11. Housing Quality and Supply Sufficiency (2/3)

12. Housing quality and supply sufficiency (3/3) • According to official data, the total of available dwellings reports to the number of 433.212 dwellings, while the number of households was found to 303.342 and the total population 840.407. • The geographical dispersion of the available dwellings follows the one of the population. • Conclusion: In Cyprus, the supply of available dwellings for residential purposes is sufficient, while their quality appears above average (29,5 % of the available dwellings have more than 5 rooms).

13. General Aspects of Cypriot Private Tenancy Law (1/2) • Regulated by the provisions of Cap. 149 (Contract Act) and Law 23/1983 (Rent Control Act). • Rent Control Act: • Institution of Special Rent Control Tribunals. • Restrictions as to the rent price, increase and adjustment. • Prohibition of evictions

14. General Aspects of Cypriot Private Tenancy Law (2/2) • Conditions: • The spesific tenanancy falls within the application scope of Rent Control Act. • The spesific tenancy is qualified as statutory. • Art. 2(ε): In order for the protective provisions of Rent Control Act to apply, tenant should be a citizen of the Republic of Cyprus. • Severe critique of above prerequisite. Direct violation of art. 14 European Convention on Human Rights, art. 1 of 1st Protocol, art. 1 of 12th Protocol, and art. 12, 14, 17, 43, 44 of the Treaty on European Union.

15. Thank you for your attention!