FURTHER protection for people struggling in the Spanish financial climate is to be announced today.
Spain’s new government will extend the current restriction on home evictions, protecting those that can’t pay rent or their mortgage.
The announcement is part of a move to guarantee the right to decent housing by the Prime Minister, Pedro Sanchez, and Deputy Prime Minister Pablo Iglesias, which formed part of their coalition pact when they came to power.
According to records, rents across Spain have increased by more than 54% since 2014.
Indeed, the United Nations said last month that the country faced housing problems of ‘stunning proportions’, affecting those struggling without work or sufficient benefits.
The current moratorium on evictions was due to expire on May 15 but will now be prolonged by two to four years, according to Reuters.
The decree to be announced today, March 10, will extend the scope of the moratorium for homeowners beyond banks to cases involving any legal creditor, with another announcement regarding renters to follow.
The Deputy Prime Minister admitted, “Not only will the moratorium be extended to avoid evictions due to unpaid mortgages, but its remit will also be extended so that the decree includes more cases of vulnerability in many families.”
Iglesias followed, “The government is also going to stop some evictions for non-payment of rent in high-tension markets where there are vulture funds involved.”
A vulture fund is a hedge fund, private equity fund or distressed debt fund, that invests in debt considered to be very weak or in default.
The measures are expected to focus on cities such as Madrid and Barcelona.