The cabinet approved an amended special incentive to produce affordable housing, either for sale or rent, on Wednesday. The changes will impact third-country workers in particular.

The incentive is now expanded to become more attractive for the construction industry, particularly land developers.

Speaking after the meeting, Interior Minister Constantinos Ioannou said some of the main changes were the expansion of implementation areas, so that the incentive could be used in commercial and tourist zones, as well as policy statement areas adjacent to local plans.

The building factor is increased to 35 per cent and the minimum net area of a plot is reduced to 2,000 square metres for town planning zones with a building factor lower than 100 per cent.

Furthermore, a new order will be issued to regulate the principles, criteria and town planning control for applications concerning collective accommodation housing complexes.

Ioannou said these complexes aimed at “covering housing needs for a specific group of the population, for short-term and medium-term accommodation, as well as serving the smooth operation of businesses and other activities, which constitute the main pillars of the economy”.

“Today’s cabinet decision contributes to achieving the aims we set, both the ministry and the government, by implementing a comprehensive housing policy,” he said.

The minister added that “the changes adopted in the special housing incentive further enhances one of the two pillars of the housing policy, concerning the increase of housing reserves as a whole, specifically targeting the creation of choice for affordable housing, through the collaboration of the public and private sector.”

He also expressed the intention “to enrich our strategy with realistic and practically applicable solutions, which will lead to the gradual alleviation of the housing problem that is of concern to a significant number of people.”

Ioannou said there was “a huge problem in housing foreign workers” and that the solution, which did not demand a cabinet decision, was the order setting the minimum area of bedrooms with a toilet, shared kitchen and living room, for collective accommodation of up to eight people.

“So, someone who will be housing third country workers for his business will be able to create a space, following the model of student dormitories,” Ioannou explained.

This, he added, would release other developments that could be used by families.