Catalonia tells landlords use or lose empty housing in affordable property drive

    • The move comes two weeks before Spain holds local elections, with affordable housing being one of the key themes.
    • The move comes two weeks before Spain holds local elections, with affordable housing being one of the key themes. PHOTO: PIXABAY
    Published Thu, May 11, 2023 · 03:20 PM

    THE government of the Spanish region of Catalonia has told landlords to find occupants for the empty properties they own, or risk them being expropriated.

    A plan announced this week to repurpose up to 70 houses that have been empty for over two years in 14 towns where low-income housing is in high demand could be expanded in scope and budget, a senior official told Reuters on Wednesday (May 10).

    The move comes two weeks before Spain holds local elections, with affordable housing being one of the key themes amid a flurry of announcements by the central government to address the issue.

    Government figures show that Spain offers its citizens just 290,000 public housing units, covering 1.6 per cent of households, compared with 30 per cent in the Netherlands and 16.8 per cent in France.

    “The government’s wish is to mobilise these houses, not to get to the stage of expropriating them,” said Juli Fernandez, the Catalan government’s head of housing.

    He said he hopes that landlords with multiple properties, mainly banks and funds, will offer social rental.

    The government originally earmarked 45 municipalities, but only 14 agreed to take part, with Barcelona not being included. It said on Tuesday that it has budgeted 5 million euros (S$7.2 million) for potential expropriations, which it estimates would cover the cost of buying 50 to 70 houses for half their market value.

    The programme, which will come into force in the coming days, gives one month to property owners to explain why they are empty. Without reasonable justification, they then have three months to agree to sell the house to the government or put it up for rent. If neither happens, the government would have three months to expropriate it.

    Carles Sala, spokesperson of Catalonia’s real estate agents association, API, said the plan would fuel business insecurity and dent investor confidence, arguing that the solution instead is to invest more in social housing. REUTERS

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