Savings banks contribute 3,000 flats to Spain’s social housing stock

Luis de Guindos, Spain’s minister for the Economy, assured during a Parliamentary session that the country’s financial entities have committed to provide 6,000 homes to the state housing stock programme. The Spanish banking association AEB has yet to announce its figures, but the confederation of savings banks CECA confirmed this week that it will supply 3,000 units.

The Spanish government is still in negotiations with both CECA and AEB, and the housing industry, in order to fulfil an official decree whose aim is the protection of vulnerable insolvent mortgage debtors.

CECA said savings banks have been promoting affordable rents since the beginning of the crisis. For instance, Catalan bank La Caixa alone has up to 3,000 homes in offer at low rents for people with below-minimum incomes. Catalunya Caixa, another Catalan entity, has introduced a room-renting scheme for young people.

According to de Guindos, the decree affords two years with no payments for those in the direst economic circumstances caused by unemployment. The minister explained that the housing stock programme will also rent homes to those who have lost their only residence. Prices will be cut down to a third of the lessees’ income.

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