The Government of Spain reinforces the Affordable Rental Housing Plan with an additional €260 million

Moncloa Palace, Madrid

The Council of Ministers has authorised an addendum to the agreement between the Ministry of Transport, Mobility and Urban Agenda and the State Public Entity for Land (SEPES) to promote the supply of affordable rental housing.

The head of the ministry, Raquel Sánchez, explained that the planned expenditure - €115 million - is thereby being increased by €260 million, bringing the maximum amount of expenditure planned for this year to €375 million. Sánchez highlighted that the funds transferred to SEPES since 2018 amount to almost €622 million.

"We are committed to promoting housing because we believe that having a house, a home, is one of the main sources of dignity and well-being for people, especially for those who cannot afford to pay rent or a mortgage and, above all, to meet the needs of both the most vulnerable and young people," said the minister.

Raquel Sánchez pointed out that the Spanish housing stock barely reaches 290,000 public housing units that cover only 1.6% of households, a far cry from the average percentage in neighbouring countries, which is 30% in the Netherlands, 24% in Austria and 16.8% in France. Hence the importance of the Affordable Rental Housing Plan and the addendum approved today: "We are working as a matter or priority to bring these public policies where the market does not reach", the minister said.

Affordable housing development

The head of the Ministry of Transport, Mobility and Urban Agenda has detailed that this plan has already mobilised around 60% of the planned housing. Specifically, 14,266 dwellings have been promoted in coordination with the autonomous communities and local councils, within the framework of the last two state housing plans.

To this amount must be added the 9,849 dwellings resulting from the direct agreement with local entities and communities and those that will be offered thanks to Recovery, Transformation and Resilience Plan resources. Raquel Sanchez said that there are already agreements in place to build almost 14,000 homes, "and we will undoubtedly reach the objectives of the Recovery Plan to build 20,000 homes by 2026".

The Minister for Transport, Mobility and Urban Agenda, Raquel Sánchez, during her speech at the press conference after the Council of Ministers | Pool Moncloa/Borja Puig de la Bellacasa

The minister pointed out that her department is also mobilising the dwellings that form part of the social portfolio of the SAREB, the company that manages the assets resulting from bank restructuring: 15,000 of them are already inhabited and 28,000 are planned. Regarding the housing included in the agreement with the banks to constitute a social fund, almost 10,000 homes have already been rented.

Ensuring the social function of housing

Raquel Sánchez highlighted the role that SEPES plays in the development of affordable housing policies, and the importance of having the tools to recover public land that is in disuse or obsolete, whether it belongs to the General State Administration, other administrations or other entities. This greater capacity, she added, also allows us to respond to the demographic challenge with agreements such as those reached, for example, in Pedrafita do Cebreiro (Lugo) and Sarrià de Ter (Girona), and also to seek synergies with projects such as the battery gigafactory to be established in Navalmoral de la Mata (Cáceres).

The addendum authorised today provides SEPES with sufficient liquidity to take on new projects and strengthens its position to develop those already included in the agreement, such as Ca n'Escandell (Ibiza), Son Busquets (Mallorca) and the Engineers and Artillery barracks in Valencia. Another key initiative is the Operation Campamento in Madrid, one of the largest urban regeneration operations in Europe in recent years, which will allow for the construction of some 11,000 affordable housing units.

The minister indicated that these actions and the planning of new land should enable SEPES to exceed 30,000 homes over the next decade, and stated that the government's intention is to approve new addenda. "This government has had to start practically from scratch to try to reverse a housing model that has marginalised many people, low-income families, women, young people and migrants. We have been working for five years to ensure that the social function of housing is guaranteed, and that it ceases to be an instrument for the enrichment of a few", the minister explained. Sánchez recalled that the budget for housing policies has increased eightfold over this period.

Greater guarantees of the right of defence

The Council of Ministers has submitted to the Spanish parliament the Draft Organic Law on the Right to Defence, which develops this fundamental right enshrined in article 24 of the constitution.

The Government Spokesperson and Minister for Territorial Policy, Isabel Rodríguez, during her speech at the press conference after the Council of Ministers | Pool Moncloa/Borja Puig de la Bellacasa

The Minister for Territorial Policy and Government Spokesperson, Isabel Rodríguez, explained that the regulation, a pioneer in Europe, is part of the plans to modernise the judicial system, reinforces the rule of law, promotes confidence in justice and responds to the needs of both the 250,000 men and women who make up the legal profession and of citizens as a whole.

The law covers different aspects of effective judicial protection, such as free access to the courts, the right to a congruent and well-founded decision by an impartial judge, the invariability of final decisions and the enforcement of decisions in exact terms. The guarantees and rights of the legal profession are also covered.

In short, "it is a question of providing the justice system with greater guarantees, so that the right to a defence cannot depend on each individual's pocket, and that is why all legal advice services are attended to and respected regardless of the economic resources of the person who needs them", said Isabel Rodríguez.

Sustainability and maintenance of industrial employment

In addition, the government has earmarked €450 million for the implementation of Arcelor's circular hydrogen project in Asturias. This aid is part of the Decarbonisation PERTE.

The government spokesperson highlighted the importance of this initiative within the project to transform Spanish industry, both for the maintenance of more than 6,000 jobs and for the unique nature of the use of hydrogen as a renewable energy. There is no precedent, she said, for a project of this kind in the steel industry in Spain and in neighbouring countries.

Non official translation