The Government Bets on Housing Model in Line With European Partners

27/06/2014 – Inmodiario

Spain´s Minister of Development Ana Botella informed the Senate about the Government´s decision to gamble on a housing model similar to the one found in other European countries, giving priority to rent, refurbishment and urban regeneration.

In its recent “National Reform Programme Spain 2014” progress report, the European Commission stated “measures have been taken to add to size and efficiency of the rental market”.

When it comes to social housing, “it turns slowly towards lease” having in mind that traditionally ownership of houses have predominated in Spain.

As Botella proves, the President kept his word and intended €2.31 billion for the housing matters included in the “State Plan 2013-2016”.

After reminding how important is ruling of the housing sector for the overall health of the country´s economy, the Minister recalled the new regulation on renting (Law 4/2013) which allows boosting the lease market as a successful alternative of enhancing access to the property.

In regard to refurbishment, the Law 8/2013 concerns building renovation and energy efficiency system. The regulation lifts up numerous legal and administrative obstacles which used to restrain refurbishment works, at the same time enhancing their execution and financing, as well as technical and economical viability. What is more, for the first time there appears a uniform economic limit for property maintenance requirements for the owners.

Finally, in financial terms, capital gains will be added to refurbishment works.

Moreover, the new plan regulates the housing aid eligibility. Basically, it foresees public help for mortagage subsidizing granted in the frameworks of the previous State Plans, rental support for families and other co-habitance units with limited resources, as well as aids for urban refurbishment, renovation and regeneration.

Original article: Inmodiario

Translation: AURA REE