Is the EU complicit in property crimes?

Nigel Howarth
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16

THE FAILURE of the Cypriot government to comply with its obligations under the EU Unfair Commercial Practices Directive (UCPD) was the subject of a complaint raised with the European Union by Denis O’Hare of the Cyprus Property Action Group.

In its reply, the European Commission assured Mr O’Hare that:

“Our Unit has recently sent a request for information to the Cypriot authorities via the so-called EU-pilot under the abovementioned file number (CHAP(2011)3252) to investigate the matter. In the letter to the Cypriot authorities, we have requested explanations as to the actions carried out at national level to address the reported practices and ensure an appropriate protection of European consumers.

“The Cypriot authorities have until January 2012 to submit a reply. Further action will depend on this reply”.

Frustrated by the lack of progress, MEP Daniel Hannan has raised a question in the European Parliament:

Question for written answer E-009932/2012
to the Commission
Rule 117
Daniel Hannan (ECR)

Subject: Justice for property buyers in Cyprus

Tens of thousands of property buyers in Cyprus have developer mortgages on their homes thanks to the corrupt actions of property developers, banks and lawyers. The Government of Cyprus is complicit in these crimes owing to its failure to publicise and enforce the Unfair Commercial Practices Directive (UCPD), as per official complaint CHAP(2011)3252.

Unless the Commission punishes the Cypriot Government for this and offers redress to the victims, is it not also complicit in these crimes?

Cyprus construction activity may be improving

David Crowther
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2

THE NUMBER of building permits issued in August 2012 stood at 477 compared with the 478 issued in August last year; a small decrease of 0.2%, according to the latest figures released by the Cyprus Statistical Service.

Compared with August 2011, the total area of these building permits decreased from 130,118 square metres to 97,744 square metres (-25%), however, their value increased from €113.7 million to €125.7 million (11%).

During August, building permits were issued for:

  • Residential buildings – 293 permits
  • Non-residential buildings – 75 permits
  • Civil engineering projects – 73 permits
  • Division of plots of land – 33 permits
  • Road construction – 3 permits

During the period January – August 2012, 4,761 building permits were issued; a decrease of 6.7% compared to the number issued in the same period last year, while the total value of these permits fell by 23.4% and their total area fell by 31.1%.

New home construction

The 293 residential building permits approved in August provided for the construction of 422 new homes comprising 233 single houses and 189 multiple housing units (such as apartments and other residential complexes).

This is an increase of 5% compared with August 2011 when building permits were issued for the construction of 403 new homes.

During the first eight months of 2012, the number of new homes for which permits have been issued has dropped 35.7% compared with the same period last year.

Cyprus new homes August 2012

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

MP to co-ordinate Cyprus property defence group

Nigel Howarth
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22

BILL CASH, Member of Parliament for Stone, is urging British property owners in Cyprus to contact their MPs to form the All Party Parliamentary Group for the Defence of the Interests of British Property Owners in Cyprus:

Please ask your MP to join the All Party Parliamentary Group for the Defence of the Interests of British Property Owners in Cyprus

As many of you may know, a meeting was held in Parliament on 31st October, at which it was agreed that I would co-ordinate an All Party Parliamentary Group for the Defence of the Interests of British Property Owners in Cyprus.

I am intending to hold the first session for that group as soon as reasonably possible. However, the setting up of the group depends upon your involvement – I am asking you to please contact your MP and urge them strongly to get in touch with me. This will mean that your MP can then join the All Party Parliamentary Group for the Defence of the Interests of British Property Owners in Cyprus.

I have been vigorously pursuing this issue in this country and Cyprus itself and have spoken to a number of government ministers there in my capacity as Chairman of the European Scrutiny Committee during the Cyprus presidency.

I strongly recommend that you or other people you may know who are involved in trying to obtain justice and fairness in relation to their properties in Cyprus to contact their MP and urge them strongly to get in touch with me. This will mean that your MP can then join with me to form the All Party Parliamentary Group for the Defence of the Interests of British Property Owners in Cyprus. It will allow us to set up a fully, effective All Party Group to act as a parliamentary coordination for the defence of your interests.

It is very much in the interest of all those involved to have a parliamentary framework within which to continue to exert pressure on your behalf, irrespective of any legal considerations.

The various individuals and groups cover many different parts of the country with different constituencies and different MPs from all parties who I am sure will want to help but cannot currently do so unless there is a degree of coordination of the kind I am suggesting.

Please circulate this letter so that those involved may ask their MPs to join the group.

Yours ever,

Bill Cash
Member of Parliament, Stone

The name and contact details of your MP can be found via http://findyourmp.parliament.uk/

Cyprus property sales continue downward spiral

Nigel Howarth
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3

PROPERTY sales in Cyprus continued to decline in October with a total of 454 contracts deposited at Land Registries across the island compared with the 565 deposited in October 2011; a fall of 20 per cent.

Of those 454 contracts, 77.5 per cent (352) were in favour of Cypriot buyers and 22.5 per cent (102) were in favour of overseas buyers.

However, October’s 20 per cent decline is lower than the 27 per cent decline experienced in September and this may be a sign that the downward trend is starting to slow down and level out as we approach the end of the year.

Recently, uncertainty in the market has been heightened by the troika’s proposal that banks should repossess homes held against non-performing loans within 18 months – and by the as yet unknown role of the proposed ‘Cyprus Asset Management Company’; a ‘bad bank’ that will ‘buy’ non-performing and non-core assets at their real (long term) economic value and maximise their recovery over the medium term.

Teams of valuers from several Cypriot and overseas companies are currently valuing properties used as collateral against mortgages and other bank loans – and it is unlikely that we will know how much the banks will need for a bailout until early next year.

Other factors depressing domestic sales are the record level of unemployment in Cyprus, which climbed to 12.2 per cent in September, one of the highest year-on-year increases in the European Union – and the proposed hike in property taxation.

On a more positive note, revenue from tourism soared to a new record high of €312.1 million in August and tourist arrivals are up by more than 10 per cent this year.

Domestic property sales

Overall 90 fewer properties were sold in October than in October last year; a fall of 20%.

Nicosia was hardest hit with 53 fewer properties being sold (-46%). Sales in Famagusta fell by 22 (-42%), while in Limassol they were 35 fewer sales (-25%).

However, 20 more properties were sold in Paphos (+27%) than in October 2011, while the number of sales in Larnaca was unchanged at 60.

Cyprus domestic property sales October 2012

In the first ten months of 2012 sales to the domestic market stood at 4,198 compared with the 4,449 sold over the first ten months of last year; a drop of 251 (-6%).

Overseas property sales

Cyprus-wide sales to the overseas property market fell by 21 (-17%) in October compared with October last year and, with the exception of Famagusta, sales were down in all districts.

In Paphos, the number of properties sold fell by 17 (-38%). In Larnaca, sales fell by 5 (-25%), while in Nicosia 2 fewer properties were sold (-20%) than in October last year.

Famagusta bucked the trend with 6 more properties being sold; a 67% increase on the 9 sold during October 2011.

Cyprus overseas property sales October 2012

During the first ten months of 2012, sales of property to the overseas market stood at 1,132 compared with 1,433 sales during the first ten months of last year; a fall of 301 (-21%).

Protest outside Alpha Bank London

Nigel Howarth
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18


ALPHA Bank London at 66 Cannon Street was the venue of a protest held to raise awareness of the plight of people who contend that they were mis-sold mortgages denominated in Swiss Francs by the Alpha Bank in Cyprus.

It was typical winter’s day in London and the dozen or so protestors who had braved the cold and wet weather handed out leaflets detailing their plight to a constant stream of commuters and passers-by in the busy heart of the city.

The protest was part of a ground-swell of campaigning against Cyprus-based banks and many of the protestors stayed in London overnight for a meeting with MPs at Westminster the following day – see ‘All-party MP group to help property buyers‘.

Swiss franc loans were sold to tens of thousands of Britons and locals by Cypriot banks and their agents in 2007 and 2008, during the peak of the island’s property boom.

Banks in Cyprus have started issuing writs and termination notices on those who have defaulted on their mortgage repayments. Several hundred buyers are now being represented by legal groups who are taking action against banks and developers in Cyprus and UK-based financial advisers.

Communal charge dodgers could end up in jail

Nigel Howarth
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12

prison barsOWNERS of apartments in Cyprus and units in other types of building complexes who refuse to pay their fair share towards the insurance, maintenance and repair of the common areas could soon find themselves facing a 12 month jail sentence or a fine of €1,700.

The proposals are contained in a bill tabled in parliament by MP Christos Mesis.

In a report accompanying the bill, Mr Mesis explained that the changes to the law are necessary to address health and safety issues arising in public areas of developments due to their lack of maintenance.

In some cases Management Committees established to manage the day-to-day operation of residential complexes are unable to meet their responsibilities due to owners refusing to pay; this is a particular problem with properties in holiday complexes where many of the owners are living overseas.

If the bill becomes law, Management Committees will be able to take any steps necessary to recover amounts due from anyone failing or neglecting to pay their fair share in accordance with the provisions the law – non-payers could end up in jail.

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