The plenary session of the Parliament has passed the Housing Act today. The law had been developed to resolve the problems of access to housing and to ensure consistency.
The most important elements are the following:
- Due to the current difficulties as regards access to housing, the new law will oblige the “Grand Holders” of properties to surrender those properties which have been vacant for two years or longer. Therefore, a team will be set u, which will be responsible with the identification of such properties. There will be an obligation to register vacant properties in a corresponding register (failure to register may result in a fine of 3.000 to 30.000 €). Property owners will receive a monetary compensation.
What is a Grand Holder? Grand Holders are those persons which actively participate in the real estate market and have control over ten or more properties by way of ownership, leasehold or usufruct (beneficial interest). There must be an economic activity which corresponds to the properties; mere ownership is insufficient. Proprietors who own those properties as part of their assets are not affected. They have to act as active participants on the real estate market and there has to be a corresponding registration.
- As regards social housing (VPO), to ensure that there are sufficient objects of this type, all new apartments with this qualification will forever maintain it. This means, they can not be speculated with and cannot be sold for a price higher than the one stipulated.
This measure does not affect the current VPO. It is not retroactive.
- Furthermore, social housing and welfare for people who find themselves in a situation of particular vulnerability will be advanced. It is the obligation of the public administration to guarantee that those people who find themselves without a home and do not have the necessary resources have access to housing at market value, if they have been registered on the Balearic Island for set minimum time frame.
- Basic supply will also be warranted, to prevent cuts in case of energy poverty. Providers must inform their clients about this right which intends to safeguard members of the public and ensure that they can enjoy decent living conditions in their home.
- Moreover, a support service on housing will be established which will be universal and without charge. As an integral part of the Balearic Institute for Housing (IBAVI), members of the public who find themselves at risk of loss of housing (because they are unable to pay their rent or mortgage) will be supported with valuable information which they will need to ensure their rights are met when dealing with the purchase, rental or financing of a home.
Anna Álvarez
Lawyer