Social Housing is in Very Short Supply in Málaga

17 March 2019 – Diario Sur

Social housing is in very short supply in Málaga. More than 27,000 families are registered on the waiting list for VPO properties, to purchase or rent, of whom 18,723 have been waiting for at least five years. 4,768 new families were added to the register last year alone. But only two out of every 100 families ever receive the good news that they have been selected to be awarded a home. Over the last few years, just 345 homes have been handed over.

Why are VPO homes not being constructed? There are several reasons, but one of the main ones is the lack of funding from the State and the Junta de Andalucía for public and private property developers. The most recent housing plans have focused on subsidising rental payments and undertaking renovation work rather than on the construction of new homes.

The Town Hall of Málaga has projects in the pipeline for the construction of 1,001 public housing units on land to the west of the extension of the Teatinos campus. The European Investment Bank (EIB) is willing to finance half of those homes, worth around €120 million, but the cost of that loan alone would have to be passed on to tenants in the form of rentals of €255 per month, which when combined with the cost of the financing the remaining 50% would not be affordable. Seven out of ten people waiting for a VPO home for rent earn less than €537 per month.

77% of applicants for a VPO home would prefer to rent, given that the option of buying is becoming increasingly less affordable. 72% of the applicants are aged under 35 years old. Public housing policies all but disappeared during the crisis and rents have risen significantly since then, hence the rise in the number of applicants on the register. In fact, the real demand for VPO homes is much higher as many families do not even bother to register given the limited chances they have of being awarded a property.

Across the province, according to data from the local council, 8,457 people are registered on the waiting list for a VPO home, with 1,613 in Torremolinos, 1,365 in Marbella and 1,359 in Estepona. Nevertheless, just 247 families have been awarded a home in any of the Málagan municipalities over the last seven years.

Original story: Diario Sur (by Jesús Hinojosa)

Translation/Summary: Carmel Drake

The PSOE Proposes that Town Halls Buy Homes to Rent Them Out

21 February 2019 – Eje Prime

The PSOE wants to create a public stock of rental homes, with reference prices, which will end up affecting market prices. To this end, in its framework program for the municipal elections to be held on 26 May, the party led by Pedro Sánchez is proposing that Town Halls purchase (already built) homes for rental, although without considering those that come from evictions executed by the banks.

The text reflects the “absolute priority” of creating a public rental stock that is “sufficiently large” with which to develop active policies that facilitate access to housing for citizens and which “affect the prices in the rental market”, according to reports from Europa Press (…).

In terms of public subsidies for the rental sector, the socialists propose taking into account the different life needs of each cohort, such as young people who want to buy their first home and older people who are looking for family consolidation projects. Similarly, they foresee the creation of a stock of rental homes for young people (…).

Original story: Eje Prime 

Translation: Carmel Drake

Madrid Accounts For 70% Of All New Housing Permits

10 October 2016 – Inmodiario

The Community of Madrid has been boasting to property developers that it represents the real driver of the growth currently being seen in the real estate sector in Spain.

In this way, at the opening of the National Real Estate Conference, the Director of Transport, Housing and Infrastructure, Pedro Rollán, commented on the statistics and highlighted that licences for new residential construction projects in the region increased by 66% during the first five months of 2016, well above the national average increase of 27%.

During his presentation at the conference, organised by the Association of Property Developers and Construction Companies in Spain (APCE), under the title “From recovery to innovation”, Rollán commented that real estate is a strategic sector, whose contribution to GDP is essential for economic growth.

And, to this end, he stated that the sector’s reactivation is necessary to consolidate and strengthen the (overall) recovery. He emphasised the importance of the need to continue working and adapting the (RE) sector to new times, and of innovating to achieve the most accessible, comfortable and least contaminated spaces.

In this sense, the regional Government is managing aid, which will serve to encourage the renovation of homes and the regeneration and refurbishment of urban spaces, thanks to the agreement signed with the Ministry of Development under the framework of the State Housing Plan.

Thus, this year, €14.4 million will be allocated to subsidies for building renovations and €29.8 million will be spent on aid for urban regeneration and renovation.

In the same way, the regional Government is working to create a Single Integrated Assessment Report Register for buildings in the Community of Madrid, which will contain all of the assessment reports relating to more than 40,000 buildings per year.

This register will enable the data obtained to be used to identify weaknesses and deficiencies in the building stock and will help to improve their quality and sustainability, as well as to obtain extensive information to allow policies to be directed appropriately in terms of architecture and housing. All types of buildings may be registered, regardless of their purpose (use) along with the mandatory registration of all buildings that are more than 30 years old.

Moreover, assessments of the degree of conservation of buildings (ITE) are going to be unified into a single document to ensure the safety of all of the buildings in the region; their basic conditions in terms of universal access, to encourage reasonable modifications in this regard; and energy efficiency certifications (CEE) to help achieve the commitment made in terms of energy savings and building sustainability.

Original story: Inmodiario

Translation: Carmel Drake