The housing crisis in Spain has prompted a bold proposal from Alberto Núñez Feijóo, leader of the Popular Party (PP). This weekend, he will convene with party leaders in Asturias to discuss a strategy focused on increasing housing availability through the rehabilitation of vacant homes.
With these plans the political party aims to alleviate pressure on the rental market and address the country’s housing challenges in the autonomous community of Asturias.
Focus on rehabilitating vacant homes
The PP’s strategy includes incentivising the repair and refurbishment of empty properties to bring them onto the rental market. According to Paloma Martín, the PP’s Deputy Secretary for Sustainable Development, this initiative seeks to “provide interconnection services between rehabilitation companies and property owners, offering legal advice and insurance options to ensure safer transactions.” The party believes that urban renewal is essential alongside expanding new developments. Furthermore, the PP is advocating for a “surgical urbanism” approach to enhance existing housing stock.
Simplifying bureaucracy and extending deadlines
Key to the success of this initiative is streamlining administrative processes. Martín described this as “tedious and overly complex.” The PP will push for extended deadlines to make rehabilitation projects more feasible. These measures are designed to encourage property owners to participate in the scheme without the fear of red tape.
Additionally, the party will advocate for a more flexible use of European NextGeneration funds. Therefore, it is necessary the central government allows the reallocation of credits between programs. Currently, these funds are seen as restrictive, limiting the potential impact of various housing initiatives.
Addressing funding challenges
The Spanish government has set a target of renovating 510,000 homes by mid-2026, averaging 85,000 annually. However, figures from 2023 show only 37,783 homes were approved for significant rehabilitation—far short of the goal. The PP argues that the €3.42 billion allocated from European funds for housing rehabilitation is inadequate. Martín highlights the need for a €40 billion investment to meet the objectives outlined in Spain’s National Integrated Energy and Climate Plan (PNIEC).
To bridge this gap, the PP proposes a competitive financing framework for property owners and rehabilitation companies. This includes grace periods tied to subsidies or energy savings achieved through renovation.
Enhancing the role of the rehabilitation agent
A cornerstone of the PP’s proposal is the role of the “Rehabilitation Agent,” envisioned as a key figure in managing comprehensive housing projects. However, Martín stresses that this role lacks clarity, calling for its definition to be refined to enable agents to effectively coordinate between property owners, rehabilitation companies, and the government. “Reinforcing their position is crucial for successful communication and project execution,” she added.
The paradox of Spain’s empty homes
PP’s proposal is understandable in light of the paradox of empty homes in Spain. While nearly four million homes remain vacant, the country grapples with skyrocketing housing costs driven by a shortage of properties in high-demand areas. According to the Bank of Spain, 45% of these empty homes are in towns with fewer than 10,000 inhabitants, areas with little demand for housing. However, urban centres, where demand is highest, account for only a fraction of these vacancies—around 400,000 properties.
Many of these homes require significant rehabilitation to be market-ready, suffering from poor accessibility, outdated infrastructure, or low energy efficiency. Mobilising these homes could help ease market pressures. However, the required renovation scale poses a significant challenge. The PP’s focus on streamlined processes and enhanced funding could play a pivotal role in addressing this paradox and unlocking the potential of Spain’s idle housing stock.
Also read: Millions of empty houses but Spanish housing shortage is increasing