Spain suspends property evictions for two years

Prime Minister Mariano Rajoy will work with the banks to devise a solution

Spain’s banks have announced that they will suspend evictions for the country’s most vulnerable people for the next two years after a woman in northern Spain committed suicide a matter of days before she was due to be evicted.

The announcement – made by the Spanish banking association AEB – is a bold but welcome move. It is estimated that 350,000 families have been evicted from their homes since 2008, which is when Spain’s economic crisis hit.

Reports from southern Spain suggest that another man, believed to be in his ‘50s, took his own life in Granada after receiving notice of his impending eviction.

This latest act of desperation sparked demonstrations in some parts of Spain, where an organisation called Platform for Mortgage Victims has been blocking the authorities’ access to properties in an attempt to prevent further evictions.

Spain’s eviction rules have been criticised by the European Court of Justice, who have claimed that they violate European consumer protection rules. The Spanish government is meeting with the opposition this week, but in the meantime, this announcement by the banking association has been welcomed.

“We are living through things that no one likes to see, situations that are completely inhumane,” said Spain’s Prime Minister Mariano Rajoy during a political meeting on Monday. “I hope that we will be able to talk about a temporary suspension of evictions for the most vulnerable families.”

Price corrections
If the banks’ announcement is a glimmer of silver lining for beleaguered property owners, prospective buyers also have reasons to be cheerful. Latest statistics from Property Wire have revealed that property prices in Spain currently average €1.566 per square metre, which is a full 10% lower than a year ago.