Rooftops in Palma - archive photo. Housing decree aims to resolve homelessness. | Pere Bota

The Government could have first refusal in the sale of foreclosure properties under the new decree of urgent housing measures which was approved by the Executive on Friday.

"The decree does not solve the problem of homelessness on its own but it is a very important step, which will be complemented by other measures," said Mobilitat & Habitatge, Marc Pons.

The decree will be published next week, then validated by Parliament, but it will not be processed as a law or include changes in the text that was approved this Friday.

The regulations consider extending the right of first refusal and retraction in favour of the Government if the bank wants to sell it to real estate companies or investment funds, which are also known as vulture funds.

Goodbye to payments in B

On paper this would mean preventing payments in B since any operation involving the Executive would require total transparency.

The new regulations don’t just affect protected housing, the regime that allowed the construction of VPO at higher prices will disappear and the decree gives the Government the power to intervene when buildings are sold with sitting tenants.

Buildings that were left half finished during the crisis may receive new licences so that they can be turned into VPO properties.

The aim of the decree is to provide affordable property for people who’ve been priced out of the market by soaring property prices and extortionate rents, which many blame on the tourist rental market.