A total of 146 primary residences were repossessed in Cyprus during 2025, generating approximately €30 million in sales proceeds, with an average property value of around €205,000, according to Stavros Papadouris, President of the Cyprus Green party.
Speaking at an information event focused on foreclosure legislation, Papadouris argued that the figures contradict the “convenient narrative” that only in a limited number of extreme cases are primary homes repossessed. Instead, he stressed that families and primary homes lie behind every repossession case, underlining the broader social implications of the issue.
Testimonies highlight social impact of repossessions
The event, held at the European University in a notably emotional atmosphere, examined pending legislative proposals currently before the House of Representatives relating to foreclosure procedures and borrower protections.
Participants shared personal accounts illustrating the human consequences of foreclosure legislation enacted since 2014. According to the Cyprus Green party, these testimonies demonstrate that the matter remains an open social wound requiring immediate and meaningful policy responses.
Calls for stronger legal safeguards for borrowers
Papadouris reiterated that meaningful protection for borrowers depends on restoring the right to seek legal recourse before a foreclosure takes place. Such a provision, he argued, would allow borrowers to effectively challenge the size of their debt, excessive charges, interest rates, and potentially abusive contractual clauses.
He emphasised that without a genuine right of defence prior to losing property, it is difficult to claim that the existing framework offers a balanced and fair approach.
Debate focuses on abusive clauses & Ombudsman
The Green party also welcomed the generally positive stance of most parliamentary parties regarding proposed legislation addressing abusive loan clauses, with the exception of DISY.
However, Papadouris noted that critical issues remain unresolved, particularly those linked to strengthening the role of the Financial Ombudsman and ensuring that decisions carry binding authority.
Government proposals currently before Parliament include provisions granting binding power to Financial Ombudsman decisions up to €20,000, with data indicating that approximately 75% of relevant disputes fall within this threshold.
Pressure for reform of foreclosure framework
Papadouris stressed that the debate cannot be confined to fragmented technical adjustments. Instead, both the legislative and executive branches must work towards a genuinely effective framework that ensures:
- real legal defence mechanisms for borrowers
- oversight of potentially abusive lending practices
- meaningful access to justice and dispute resolution
The Green party confirmed it will continue advocating for policy solutions aimed at protecting primary residences from being repossessed and restoring the balance between citizens and financial institutions.
The organisation concluded that the experiences shared at the event reinforce the urgency of reform, highlighting the continuing social consequences of foreclosure laws implemented over the past decade.
