País Vasco is Committed to Social Housing for Rent Not Sale

25 March 2019 – El País

País Vasco is going to stop building public housing for sale. From 2020 onwards, all of the public developments will be for rental, after it was revealed to be the preferred option for 52,000 of the 64,000 applicants registered on the waiting list for social housing properties. The aim is to boost supply whereby avoiding a shortage that could lead to a bubble.

The regional Government’s commitment to the rental sector is huge. According to data from the Government itself, investment in the segment in Euskadi will amount to €1.12 billion between 2018 and 2020, which is €48 million more than the State is planning to allocate to its housing plan for Spain as a whole during the same period (€1.07 billion).

The Basque Government already owns a stock of 13,340 social housing units for rent, and it is currently building 4,600 more.

Another one of the major battles facing the Basque Government is how to get the more than 20,000 empty homes in the region onto the residential market. This year, the Government is set to approve a decree that fixes the fee for empty homes at €10/m2, which the Town Halls will then be able to apply if they so decide.

It has also launched a program of subsidies of up to 60% of the rental payment for young people aged between 23 and 35 who want to leave home.

Original story: El País (by Pedro Gorospe)

Translation/Summary: Carmel Drake

35