Tuesday, April 29, 2008

New housing policies to favor rented and subsidised housing

The Ministry for Housing looking at ways of helping divorced and separated couples

The Ministry for Housing has announced that it will look at ways of expanding public assistance for young people as well as divorced or separated couples in the new State Plan 2009-2012.

The Ministry of Housing also confirmed that it expected property prices to ‘moderate’ further, although it insisted that it preferred any drop in prices to keep in line with inflation.

According to the latest figures published by the Housing Department, directed by Beatriz Corredor, the price of housing rose by 4% in the first 3 months of this year which is slightly lower than the inflation rate of 4.5% recorded for March.
Nevertheless, sources close to the Ministry of Housing have ruled out a sharp fall in property prices and have assured that the housing sector will recover in 2010, when the demand and supply of housing will readjust itself.

Although property promoters have presented numerous proposals to the government to try and revive the demand for properties and the housing sector the Ministry for Housing has confirmed that its priority is to help those who have difficulties finding a property to live and to help these people gain access to housing through state subsidised housing, known as VPO (Vivienda Protegida Oficial). In this respect it hopes to work together with local town halls and regional governments.

In the short term the Ministry of Housing is aiming to design a new housing plan, dominated by VPO’s and the rental market. The government also denied that its subsidy of 210 euros for young people renting property was not affecting the price of renting and that there are several measures to ensure that rental prices do not rise excessively.

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posted by Euroresidentes at 3:09:00 PM


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