Trujillo tries to cool property price boom

3rd May 2004, Comments 0 comments

3 May 2004, MADRID - Housing minister María Antonia Trujillo said Monday she believed sharp rises in house prices detected in the first quarter will gradually decrease throughout the rest of the year.

3 May 2004

MADRID - Housing minister María Antonia Trujillo said Monday she believed sharp rises in house prices detected in the first quarter will gradually decrease throughout the rest of the year.

Trujillo said figures published last month by property analysts Tinsa "reflect recent soaring increases".

According to Tinsa, in the first quarter new property prices went up by 17.31 percent, while second-hand properties rose by 16.94 percent.

Spanish property has doubled in price in the past five years.

Between 31 March 1999 and 31 March 2004, housing prices went up on average by 109.7 percent.

In order to encourage their gradual decrease, Trujillo wants to reach agreements with local and autonomous administrations to make 70,000 council houses available, of the 180,000 promised during the Socialists' recent election campaign.

The ministry is currently working on an action plan, which Trujillo is hoping to discuss at a cabinet meeting at the end of June.

The ministry is also working on the creation of a Public Rent Agency, which will act as a go-between for landlords and tenants.

Long-term plans include a housing plan for 2005-2008 which will encourage renting over buying, among other objectives.


[Copyright EFE with Expatica]

Subject: Spanish news

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