THE Balearic government should be congratulated on its plan to get the banks to release thousands of unsold homes on to the rental market. I know it sounds incredible but there is a severe housing shortage on the island at the moment with many young families struggling to find a home to either buy or rent. The banks are not lending money so many young couples have to turn to the rental market only to find that there isn´t much available.
But the banks have literally thousands of houses and apartments which have been repossessed which they can´t sell because of the recession. But the Balearic government, believes these homes can easily be freed and put up for rent possibly with government help.
Granted that perhaps it is only a short term measure but it does make some sense. The other day I was in my bank branch and picked up a booklet of all their unsold properties which they now have on their books. It was quite amazing, I am not talking about a few houses and apartments. I am talking complete apartment complexes which have recently been built. Banks are rapidly becoming major competitors for the real estate companies. In some cases they are even offering low mortgages. What an incredible state of affairs.