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Mallorca municipal land sought for 'build to rent' social housing

An inventory of public land under municipal ownership has been drawn up

Municipalities don't all have the wherewithal to undertake social housing schemes. | Sylvana Raschke

| Palma |

As part of its raft of housing emergency measures, the Balearic government is to invite town halls to cede land that can be used for social housing. The properties would fall into the category of VPO protected housing but be specifically for rent rather than purchase. The scheme has been dubbed 'build to rent', the housing minister, Marta Vidal, describing it as "an ambitious programme".

The housing ministry has drawn up an inventory of public land under municipal ownership to be forwarded to municipalities - 53 in Mallorca; 67 in the whole of the Balearics. While town halls should have this information in any event, the purpose is to highlight the possibility for developing social housing. As Vidal pointed out on Tuesday, town halls often find themselves unable to undertake such schemes themselves. The government will therefore do this instead.

The land that has been identified is currently classified for two different purposes - residential and municipal facilities. Either classification could lead to home building of the type envisaged. If town halls agree to cede land, this would then be transferred to private developers for a concession period to be determined.

In principle, VPO housing is now deemed to ultimately be government property in perpetuity; it can no longer be offered on the free market after a period of thirty years, which used to be the case. Returns for developers would, under this scheme, come from rental income; the prices are set by the government so as to be affordable.

The minister suggested that "more than a thousand homes" could be created, but until there are responses from town halls, it would be impossible to be specific. And she stressed that it would be wrong to believe that all the land that has been identified will end up being transferred.

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