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Regional authorities tighten rental market controls and support new measures

Richard Reid RUSSPAIN.com

Post by Richard Reid

Regional authorities tighten rental market controls and support new measures RUSSPAIN.com © russpain.com
Regional authorities tighten rental market controls and support new measures © russpain.com

Basque Country strengthens protection of affordable housing amid rising prices. The Basque Country maintains strict rules for government-supported housing. Authorities fear that without regulation, the rental market could spiral out of control. The region already has a permanent VPO protection system in place.

In the Basque Country, authorities are tightening control over the housing market, fearing that without new restrictions, the rental situation could become critical. Against the backdrop of a record budget of 596 million euros, the region continues to adhere to its longstanding policy of permanent protection of subsidized housing (VPO), introduced more than twenty years ago. According to former Director of Housing Planning Mario Yoldi, this measure has made it possible to maintain a stable stock of affordable apartments and prevent their mass loss from the market.

The system of permanent VPO qualification, approved in 2003 after broad public discussion, has become one of the key features of the Basque model. Despite initial resistance, the decision was made unanimously and allowed the region to avoid the loss of social housing faced by other autonomous regions. Authorities now note that thanks to this step, they are able to maintain a stable supply of affordable apartments for low-income families.

An important part of the region's policy is the so-called subjective housing minimum: families meeting certain criteria have the right to receive a state-owned apartment for rent directly from the government. According to the latest data, about 3,000 households already live in such apartments, and another 40,000 receive financial support to pay rent on the open market. This partially offsets the rise in prices, which, according to Mario Yoldi, is becoming increasingly unjustified and threatens social stability.

To engage the private sector, the authorities are offering guarantees and economic incentives to owners of vacant apartments. The Alokaplus program provides state insurance against non-payment and damage, making renting out apartments safer for small property owners. This approach gradually increases the supply on the rental market without resorting to strict administrative measures.

Mario Yoldi emphasizes that without constant regulation and open dialogue with residents, the housing market could face a serious crisis. He recommends regularly reviewing the effectiveness of measures and not hesitating to implement new solutions when old ones stop working. In this context, the experience of the Basque Country is often compared with other regions, where the approach to protecting social housing has been less consistent. For example, in Andalusia, attention to social support is also reflected in other areas—as seen in the example of initiatives to support the elderly.

For reference: In Spain, state-supported housing (VPO) refers to apartments that are built or subsidized by the government and intended for families with limited income. In most regions, these apartments can eventually enter the open market, but in the Basque Country, the principle of permanent protection is applied. This helps keep housing accessible for vulnerable groups and reduces pressure on the rental market. According to RUSSPAIN, such measures are becoming increasingly relevant amid rising prices and shrinking supply in the country's major cities.

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