The government has proposed changes to the current housing law,
where among the main programs to address the need for affordable housing,
will be the payments for rents with the right to purchase for apartments in social housing
and granting loans with 0% interest.
The first scheme is the “Rent to Buy” program. Beneficiaries will be able to rent a program apartment and a portion of the rental payments will then be counted towards the purchase price of the apartment.
The second scheme is related to loans with interest 0% and the guarantee for families who are able to repay the loan, but do not have the collateral or the money for the initial payment. In this case, the government can guarantee part of the loan, through agreements with financial institutions.
According to the draft law, the categories that can benefit from the affordable housing programs will be low or middle income families who are unable to secure housing in the free market, young people at the beginning of their careers, young families, single-parent families with minor children, employees of public services and priority professions, persons with disabilities and their caregivers, as well as citizens returning from emigration.
The draft law affects several articles in the current law on social housing, but keeps unchanged the scheme for rent subsidies based on market value prices. The law in force provides that the amount of the subsidy is determined on the basis of the average rental prices according to the market value. The 100% limit of the subsidy amount is determined by the municipalities, based on the average rental prices for the previous year.
In cases where a family chooses to live in a rented apartment with an average price above the limit defined as subsidy measure 100%, it will pay the price difference itself. The law provides that even this payment will have a limit, and it cannot exceed 25% of the family's income. In Tirana, the average rental prices for both types of apartments are calculated at 721 euros per month. For apartments of typology 1 1, the average rent prices have reached 590 euros per month.
For apartments 2 1, the average price has reached 954 euros per month. The data was published by Monitor according to the calculations of one of the real estate agencies for the transactions of the period January-June 2026. In relation to the average gross salary of about 90 thousand ALL, this rent represents about 77% of gross income.
In Tirana, rent prices vary significantly from one area to another. For 1 1 apartments, the average rents until June ranged from about 320-350 euros in suburban areas, to about 830-850 euros per month for areas close to the center. While for the 2 1 apartments, the prices ranged from 450 euros for the area of Fresk, up to 1,500 euros per month in the area near the “Air Albania” stadium.
Earlier, Prime Minister Rama, during the presentation of the housing reform, said about the rent subsidy measure that it is expected to reach up to 50% of value for young couples and for immigrants who will return to the country. According to him, the subsidy scheme will include apartment rentals worth up to 400 euros. In the first year, according to him, 3 thousand individuals will benefit, while the state is expected to subsidize 50% rent or up to 200 euros per month.
New programs
Improvement of rent subsidy and activation of private housing
The draft act expands the rent subsidy instruments and provides new mechanisms for the use of the private housing stock.
Through Article 17 of the draft law, Article 39/1 is added, which gives AKTSS and local self-government units the opportunity to identify and contract unoccupied private housing for social and affordable housing purposes.
Agreements with landlords may include medium or long-term leases, guarantees for the payment of rent, partial coverage of maintenance or rehabilitation costs, and administration of the apartment.
The criteria, procedures and forms of financing will be determined by a by-law. Also, Article 18 of the draft law adds a special program for subsidizing rent for special categories, providing for the use of an electronic platform for housing registration, application and procedure administration.
12. “Rent with right to buy” program”
Through Article 21 of the draft law, a special chapter is created for the “Rent to Purchase” program and Article 43/1 is added.
This program creates the opportunity for the beneficiaries to use the apartment owned by AKTSS against a periodic payment, where part of the payments can be credited to the purchase price of the apartment. Changing the destination of a dwelling from the social rental housing program to the “rent-to-buy” program will be done only when this matches the identified housing needs and does not affect the needs for social rental housing.
New financing and guarantee instruments
The project also provides for new financial instruments for beneficiaries who have the capacity to receive loans.
Through Article 24 of the draft law, the possibility of loans with 0 percent interest, subsidized by FSKS and/or the state budget, through AKTSS, is foreseen.
In this article, through the addition of article 47/2, the partial guarantee from FSKS is provided for individuals and families who have the ability to repay the loan, but do not have the collateral or the initial contribution required by the financial institution.
The guarantee will cover a part of the principal of the loan and its implementation will be done through agreements between AKTSS and financial institutions.
Article 6
After Article 13, Article 13/1 is added, with the following content:
“Article 13/1 Categories and beneficiaries of affordable housing
Beneficiaries of affordable housing programs are individuals/families who: a) do not own a home, are in housing norms or live in homes outside of housing standards; and/or b) do not have access to the free rental or purchase market; and c) meet the income criteria according to the levels of this law.
2. Affordable housing programs target the following groups:
a) families with income according to the definitions of point 1 of article 3 of this law;
b) middle-income families who, due to market prices, cannot afford to buy or rent; ;
c) young people at the beginning of their careers;
d) young families where the age of the oldest member is no more than 40 years old; ;
e) single-parent families with dependent minor children; ;
f) employees of public services and priority professions,
g) persons with disabilities and their guardians.
h) citizens returned from emigration who meet the conditions of the program.
Income limits and the method of categorization are determined by the decision of the Council of Ministers.”
Article 33 of the current law on rent subsidies according to market value prices
The value of the rent subsidy can be up to 100 percent of the average rent value of housing in the free market for the local self-government unit where this subsidy is granted. The maximum value of the rent subsidy is determined every year, based on the previous year's data, and is approved by decision of the council of the local self-government unit.
The payment that the family must make for the difference between the market rent and the rent subsidy value must not exceed 25 percent of the family's income.
The method of calculating the value of the rent subsidy in the free market is determined by the decision of the Council of Ministers./Monitor
