Spanish Government Buying Land for Subsidised Housing

The Spanish Government will buy €300m of land over the next few years to meet the demand for state-subsidised housing.

According to reports from Reuters the Spanish Government has announced that it is going to buy 300m of land over the next four years for state-subsidised housing.

However, it insists the move is not intended to bail out construction firms which are currently in financial trouble.

They reported that at a forum in Madrid, housing minister Beatriz Corredor said: Public money is not for saving companies in crisis.

"We have always said the growth in the property sector was unsustainable with housing building greater than demand."

The extra land is needed to meet the government's promise to increase the amount of state-subsidised homes being constructed from 100,000 a year to 150,000 a year.

The government will work with regional authorities to decide where the new homes will be built and which regions are most in need of state-subsidised homes.

Property companies will have an estimated 800,000 unsold homes by the end of this year and the housing minister has said the government is prepared to buy homes from the private sector for state-subsidised housing if the property is available at the right price.

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