Landlords get help to secure housing market

22nd June 2004, Comments 0 comments

22 June 2004, MADRID - The Spanish government announced Tuesday a new scheme to encourage potential landlords who want to let their properties.

22 June 2004

MADRID - The Spanish government announced Tuesday a new scheme to encourage potential landlords who want to let their properties.

The plan will guarantee tenants' residence rights but also gives landlords safeguards for their investments.

Housing Minister Maria Antonia Trujillo said Tuesday the government is to reform the Housing Plan to raise the maximum price of so-called "protected homes" which can be rented out to low-income families.

The idea is to encourage more developers to build those kind of homes to rent.

A law exists to stop these homes for low-income families from being too expensive.

She said the increase will not be the same in every area but will depend on the region.

But Trujillo said calls by developers to raise this maximum price by 25 percent were "excessive".

She also tried to reassure millions of Spanish property owners by dismissing reports that there would be a fall in property prices.

Analysts and consultants have been predicting that the Spanish housing boom would slow down and house prices will fall.

She said was "irresponsible" to predict that the housing bubble was about to burst.  

Trujillo said that the government was planning a series of "structural reforms" to safeguard the housing market.

She said the two-part plan will consist of implementing the new guarantees for landlords and tenants "soon" and the new Housing Plan will be introduced between 2005-08.

The new plan is designed to encourage developers to build more homes for low-income families to rent.

It would also allow access to 90,000 homes new homes each year and 90,000 "second-hand" homes.
 
A central promise of the Socialist election manifesto was to provide 180,000 affordable homes each year.
 
Many Spaniards cannot afford to buy their first home as he housing boom has seen prices rise by 17 percent this year alone.
 
[Copyright EFE with Expatica]

Subject: Spanish news

0 Comments To This Article