Evictions Bounce Back in Third Quarter Going 7.3% Up YoY

15/12/2014 – El Confidencial

Evictions from all kinds of properties increased by 7.3% year-on-year in the third quarter and marked 13.341 lawsuits, according to data by the General Council of Judiciary. Mortgage-caused evictions represented 43.4% of the total, by 22.1% more from Q3 2013, and 51.3% derived from the Law of Urban Rent, going up 4.2%, while the remaining 5.2% corresponded to other reasons.

By Spanish regions, Catalonia concentrated 22.2% of all cases, followed by the Valencian Community (16.4%), Andalusia (15.8%) and Madrid (11.6%). The report also includes the number of eviction applications received by notification and seizure service units, however, the figures only ‘allow to track the change but they do not represent absolute values‘. Moreover, the fact that the application was sent does not mean the eviction has been carried out.

On this basis, the number of applications to evict someone registered in the third quarter of 2014 was 13.342, down 6.1% from the same period last year. Of these, 8.851 were executed, up 23.1% from Q3 2013.

Mortgage Evictions Decline

On the other hand, the third quarter of 2014 saw 16.767 home seizures, meaning a 1.4% decrease from 2013. By regions, the biggest number of evictions was noted down in Andalusia, 3.783 lawsuits or 22.6% of Spain’s total. The community is followed by Catalonia, accounting for 18.3% of all, the Valencian Community for 15.5% and Madrid for 10%.

Looking closely at the year-over-year change, we see bumper rises in Extremadura (up 46.6%) and the Balearic Islands (up 45.2%), as well as in Aragon (up 31.3%), Murcia (21%) and Asturias (17%).

Claims for Unfair Firing Levelling Out to 2010 Figures

As per the report, lawsuits based on unlawful dissmissals showed 25.571 cases, down 18.3% from the last year. The number posts the lowest since the fourth quarter of 2010.

Madrid registered the highest unjustified dissmissal rates, 5.503 cases or 20% of the total. Next positioned Catalonia (17.1%), Andalusia (16%) and Valencia (10.2%).

Also, Bankruptcy Trails Go Down

Likewise, the statistics reveal that the number of insolvency processes run in the third quarter of 2014 was 1.843, down 21.6% from the same period a year earlier.

Moreover, 336 companies reached arrangements with creditors and 962 fell into a liquidation phase, meaning by 25.5% less than in Q3 2013.

When it comes to the Spanish regions, Madrid received most bankruptcy applications (376 or 20.4% of all), then Catalonia (19.3%), Andalusia (13.6%) and the Valencian Community (11.8%).

Moreover, there were 144.262 payment proceedings, jumping by 14.5% higher than in Q3 2013. Around 18.7% of them were registered in Andalusia, 16.8% in Catalonia, 15.9% in Madrid and 11.7% in the Valencian Community.

Original story: El Confidencial

Translation: AURA REE