The Government allocates 1,900 million to housing rehabilitation and rental

The objective is to multiply by ten the number of housing rehabilitation.

Thomas Osborne
Thomas Osborne
23 August 2022 Tuesday 02:48
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The Government allocates 1,900 million to housing rehabilitation and rental

The objective is to multiply by ten the number of housing rehabilitation. Going from the 30,000 homes that are rehabilitated each year now to 300,000 in 2030. A decade to extrapolate the rate of regeneration of the housing stock in Spain. This is what is marked in the recovery plan and, to achieve it, today the Government will take a step by approving in the Council of Ministers 1,889 million allocated to the autonomous communities for residential rehabilitation and social housing, as La Vanguardia has learned.

It is part of the calendar established in the European recovery plan, and is based on the distribution agreed at the Housing sector conference on June 29. Specifically, there are 1,389 million European funds to finance residential rehabilitation that will be transferred this year to the autonomous communities, to which are added 500 million more that the autonomies will receive in 2023 to offer social rental housing in energy efficient buildings.

This calendar is the one agreed between the Government and the European Commission, which establishes a progressive and flexible distribution to allow the execution of the funds, which corresponds to the autonomous communities. In this way, this year it will be possible to transfer 85% of the total funds destined to rehabilitate homes and in 2023, 100% of those that must allow the construction of up to 20,000 affordable rental homes.

Adding previous items, 3,540 million will have been mobilized from the recovery plan to regenerate residential environments and for the construction of social rental housing. There will still be a further pending authorization of 880 million more aids for housing rehabilitation by 2023.

To access these funds, the communities must meet a series of requirements. For the disbursement of the first 50%, they must demonstrate that they have calls in progress for half of the funds granted last year; and for the remaining 50% to be transferred to them, they will have to prove that they have already granted 25% of this year's aid. They are criteria designed to condition the aid to its impact on the ground, without the communities having to advance funds on their own in any case.

With the distribution of these resources, which is approved today by the Council of Ministers, the Ministry of Transport, Mobility and Urban Agenda considers that the fulfillment of the commitments acquired to promote the rehabilitation of housing is guaranteed, which will allow improving the quality of life and the comfort of the residences, provide higher quality buildings and strengthen the construction sector, which has a very important role in the Spanish economy.

On the other hand, the 1,000 million allocated to rental housing (500 million authorized for 2023 and 500 to transfer this year) should allow the construction of 20,000 new homes for this destination, which gives the administrations an opportunity to expand their park of these dwellings, of which Spain suffers from a serious deficit.

Specifically, the calculation of the 1,000 million public aid for social rental has been made allocating 50,000 euros per home. Social housing in Spain stands at around 2.5%, a percentage that drops to 1.6% if only the public rental housing stock is taken into account. Another fact that highlights this deficit is that 37% of the population that lives in a rental system at market prices is forced to spend more than 40% of their disposable income on housing.