From the start of the 1980s, VPO properties were built in the Balearics. Standing for vivienda de protección oficial, the VPOs were subsidised housing. The public administration (the Balearic Government from 1983) organised the building and set affordable prices for sale.
A form of social housing, VPO was a nationwide scheme. It was a good scheme in that it enabled people on lower incomes to buy properties at far lower prices than on the open market. But in the context of the current housing situation, there was one big flaw to the scheme. After thirty years the homes could be sold on the open market. Owners made a killing and governments lost social housing stock.
In the Balearics, a total of 27,546 homes were built. Of these, 10,427 have yet to reach the 30-year threshold. Under law at the time of their construction, these homes can be sold on the open market. The other 17,000 or so have already been sold.
The Spanish Government wants to stop this and to protect housing built with public money so that it can never be sold on the free market. Legislation to this end is likely to be introduced. In the meantime, the legislation is not necessary in the Balearics, unless the current government changes the rules (which it almost certainly will not).
In 2018, the previous government legislated to prevent the sale of VPO homes after 30 years - new homes, that is. VPOs will ultimately belong to governments in perpetuity. The critical state of social housing had become clear by 2018. Individual municipalities were running out of VPOs. In Pollensa, as an example, not a single VPO was left.
Since 2018, housing policy has shifted in the direction of social housing for rent rather than for sale. The current government is preparing a new housing law and isn't expected to change tack. Its initiatives since taking office have thus far been a mix of 'limited-price housing' for sale and for rent, the properties for sale mainly being commercial premises conversions.
There is a desperate need for more social housing, its availability indicated when taking into account the total housing stock in the Balearics. Had the government retained the 27,546 VPOs, they would represent just over four per cent of 652,123 dwellings. But the government has been unable to retain them.