The Spanish government has announced an ambitious new initiative to build 43,000 affordable rental homes. This plan, signed off by Prime Minister Pedro Sánchez along with key ministers, aims to alleviate the housing crisis affecting many Spaniards, especially young people. The project will mobilise €6 billion from the Recovery Plan and the state budget, ensuring these homes remain affordable for at least 50 years.
The initiative, led by the Ministries of Housing and Urban Agenda, and Economy, Trade and Business, in partnership with the Official Credit Institute (ICO), seeks to expand Spain's affordable housing stock. The funds will be provided through a mix of loans and guarantees, with €4 billion allocated from the Recovery, Transformation, and Resilience Plan and an additional €2 billion from the General State Budget. These financial measures aim to support both public and private developers in creating more affordable housing options.
Prime Minister Sánchez emphasised the government's commitment to addressing the housing shortage, acknowledging the struggles of many citizens to find affordable housing. He highlighted that this initiative is part of a broader effort to make this legislative period known as the "legislature of housing." The government aims to close the gap between Spain and other European countries, where around 9% of the housing stock is affordable rental housing, compared to just 2.5% in Spain.
Beyond the immediate goal of 43,000 homes, Sánchez outlined a more extensive plan to increase the affordable housing stock by over 180,000 homes during this legislative period. He noted that more than 80,000 homes are already in various stages of development. This comprehensive approach includes acquiring homes from Sareb, a state-owned "bad bank," and promoting new constructions.
The government hopes these efforts will prevent housing shortages from becoming a bottleneck for economic growth and job creation, underlining the role of all levels of government in addressing the housing issue.
