The President announces 12 new measures to strengthen the right to affordable housing

The President of the Government of Spain, Pedro Sánchez, at the closing of the forum 'Housing, the fifth pillar of the welfare state', announced new measures to strengthen the right to housing, with three priority objectives: "more housing, better regulation and more support".

Railway Museum, Madrid

The President of the Government of Spain, Pedro Sánchez, during his speech at the forum (Pool Moncloa/Fernando Calvo y Borja Puig de la Bellacasa)

Pedro Sánchez announced a battery of 12 new measures, which he described as "forceful and many of them unprecedented", with three priority objectives to strengthen the right to affordable housing: more housing, better regulation and greater aid. During his speech at the closing ceremony of the forum 'Housing, fifth pillar of the welfare state', held at the Railway Museum in Madrid, Pedro Sánchez reiterated the Government's commitment to solving the housing problem by means of more resources and new regulations, together with the joint action of all the sectors involved in housing construction.

The event was attended by the Minister for Housing and Urban Agenda, Isabel Rodríguez; the First Vice-President and Minister for Treasury, María Jesús Montero; the Third Vice-President and Minister for Ecological Transition and Demographic Challenge, Sara Aagesen; the Minister for Transport and Sustainable Mobility, Óscar Puente; the Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría; the Minister for Industry and Tourism, Jordi Hereu; the Minister for Territorial Policy and Democratic Memory, Ángel Víctor Torres; the Minister for Economy, Trade and Enterprise, Carlos Cuerpo; the Minister for Equality, Ana Redondo; the Minister for Inclusion, Social Security and Migrations, Elma Saiz; and the Minister for Digital Transformation and Public Function, Óscar López.

Pedro Sánchez stressed that access to housing has become "one of the main challenges facing European societies, including Spain". He went on to explain that in a scenario where house prices in Europe have risen by 48% in the last decade- which is almost twice as much as household incomes- "the West faces a decisive challenge if it wants to avoid becoming a society divided into two classes: rich landlords and poor tenants". He emphasised that "we are facing a serious problem, with enormous social and economic implications, requiring a decisive response from society as a whole, and with public institutions at the forefront".

After reviewing the intense action in terms of housing taken by the Government over the last seven years, Pedro Sánchez indicated that "it is not enough" because "the situation is critical", which is why he has announced "a coherent, decisive and firm step forward in our housing policy, with 12 forceful and largely unprecedented measures", which will be implemented with three priority objectives: more housing, better regulation and greater aid.

State Housing and Sareb for the new Public Housing Company

The Minister Oscar Puente, the First Vice-President Maria Jesus Montero, the President of the Government of Spain, Pedro Sanchez, the Third Vice-President, Sara Aagesen, and the Ministers Isabel Rodriguez and Pilar Alegria at the event| Pool Moncloa/Fernando Calvo y Borja Puig de la Bellacasa

He pointed out that only 2.5% of housing in Spain is public, far behind member states such as France (14%) and the Netherlands (34%), due to the fact that many subsidised housing units have been transferred to the free market and no longer fulfil their social function. For this reason, he announced that the General State Administration has just transferred more than 3,300 homes and almost 2 million square metres of residential land to the recently created Public Housing Company, which will be used to build thousands of subsidised housing units at affordable rents. In addition, throughout the first half of the year, the Public Housing Company will begin to incorporate the more than 30,000 homes currently held by SAREB, 13,000 of them immediately.

At the same time, a legal mechanism will be established so that the new Public Housing Company will have priority in the purchase of housing and land, and there will be another mechanism to guarantee that all housing built by the state will remain in public ownership indefinitely. This is how action will be taken to ensure that "whatever is built or rehabilitated with Spanish money will always belong to Spaniards, for their children and grandchildren, rather than end up in the hands of vulture funds and big speculators", he added. The promotion and construction of affordable housing in public-private collaboration will also continue to be promoted, reforming the Land Law, and the €6 billion in ICO credits and guarantees that were launched in August will be deployed, which will be used to build 25,000 new homes.

New Housing PERTE

As a novelty, he announced that the Government of Spain will create a new strategic project, the PERTE de Viviendas, aimed at promoting innovation and modernisation of the industrialised and modular construction sector, so that Spain can build houses in less time and at lower costs. This new PERTE de Viviendas will be located in the province of Valencia, where "it will be able to contribute to the reconstruction of the economic fabric affected by the DANA, and generate added value for the whole of Spain".

Public guarantees, rehabilitation and personal income tax exemption for homeowners

Another of the points highlighted by Sánchez is the need to mobilise existing housing with three new measures, which include the creation of a system of public guarantees that will protect both owners and tenants involved in affordable rentals. This system has already been successfully tested in France, and in Spain it will start in 2025 with landlords renting to people under the age of 35 years.

A programme will also be launched for the refurbishment of empty dwellings for affordable rental. Grants will be given to those who renovate a flat to make it affordable for rent for at least 5 years. Last, the Government is going to propose to the Lower House of Parliament the approval of a 100% personal income tax exemption for homeowners who rent their homes according to the Reference Price Index, without the need for them to be located in stressed areas.

Regulatory improvement in tourist flats, "socimis" and foreign purchases

The Executive will take to Parliament a tax reform which will enforce the taxation of tourist flats for "what they are: a business". Within the framework of the new European directive on VAT, it will promote the application of a tax on tourist rentals that puts them on a par with other economic activities. Furthermore, the tax advantages of the so-called "socimis" will be changed so that they only apply to the development of affordable rental housing; and after a thorough study, the purchase of homes by non-resident foreigners from outside the EU will be limited. More specifically, the tax burden they will have to pay in case of purchase will be increased to 100% of the value of the property, in line with countries such as Denmark and Canada. He also reported that the regulation will be tightened to prosecute fraud in seasonal rentals, and that a fund will be created so that regional and municipal governments can reinforce inspections.

New State Housing Plan in 2026

The President of the Government of Spain, Pedro Sánchez, during his speech at the forum| Pool Moncloa/Fernando Calvo y Borja Puig de la Bellacasa

The Chief Executive stressed that Spain "needs public intervention, public-private collaboration and perseverance", for which- while the structural measures produce results- aid will continue to be granted, as was the case in the last legislature with the implementation of aid for renting, purchasing and rehabilitation to the value of €20 billion, benefiting more than 1.5 million households. Pedro Sánchez announced that he will maintain and increase these aid programmes, which will be included in a new State Housing Plan for 2026. This new plan will pay special attention to the elderly, young people, vulnerable groups such as people with disabilities, and those living in degraded areas. In short, "more housing, better regulation and greater aid for access to housing," said Pedro Sánchez, who reiterated that "the Government of Spain is committed to a housing policy that unites tenants and homeowners".

The president underlined that for almost a decade- ever since the housing bubble generated during the financial crisis, when "speculators were allowed to do business"- the housing situation in Spain has been "aggravated" by the absence of a state housing policy. "The worst thing of all is that they do not regret it. On the contrary, they want a return to that disastrous policy; the one of the big bucks, the one leading to the bursting of the property bubble, and for the state to intervene and pay for it when it bursts", he criticised.

Faced with the "unfair and failed" model, he defended the Government's "brave and social" policy of the last seven years, during which the state budget allocated to housing has been multiplied by eight, the first Housing Law has been passed, guarantees have been granted for the purchase of first homes, and 66,000 young people have received rental vouchers of €250 per month. This is in addition to €3 billion in aid for renovation, another €3.6 billion to combat homelessness, the elimination of golden visas, new tools for residents' associations to limit the proliferation of tourist flats, and the creation of a single register of seasonal accommodation. Other notable achievements include the extension of the moratorium on evictions and the freezing of mortgage evictions until 2028, and the programme of €4 billion in financing and guarantees from the ICO which, in just two months, has reached €2 billion, facilitating the construction of some 20,000 homes, the "same amount as those financed by the ICO in the previous 35 years".

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