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Rocío Díaz with the draft of the new housing law for Andalucía. EP
Regional government in Andalucía to allow more construction to combat housing crisis

Regional government in Andalucía to allow more construction to combat housing crisis

With 25,000 new households being created every year and only 10,000 new properties coming onto the market a new draft law aims to increase supply

Héctor Barbotta

Seville

Friday, 26 July 2024, 12:29

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The Junta de Andalucía is to start procedures to bring in a new regional law designed to combat the current housing crisis. The main aim of the new Ley de Vivienda is to increase the supply of properties for sale and rent to make housing more accessible. This would involve more flexible regulations to allow homes to be built on land currently designated for other uses.

Regional minister for development and housing Rocío Díaz said on Tuesday that the law would establish "conditions to guarantee access to housing, the independence of young people, maintaining standards of housing and the protection of vulnerable people".

The draft could be approved in March next year and the legislation would go through the regional parliament a year later. However the draft includes a five-year immediate action plan to allow the construction of VPO (subsidised affordable housing) for long-term rentals on land reserved for other uses. This would allow an increase of 20 per cent in properties, with the aim of reaching 20,000 units in five years.

In Andalucía there are currently 4.6 million homes and around 10,000 new properties are built every year. However some 25,000 new households are formed, increasing demand. The Bank of Spain estimates that the current demand for housing in the region is 90,000 properties.

Property developers have welcomed the new draft bill with "optimism". According to Ignacio Peinado, president of Fadeco, which represents the real estate sector on a regional level, the law "appears to be going in the right direction as it is not against an increase in the supply of housing which is what is needed".

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