Housing Reform in the Bask Region: New Opportunities for Middle-Income Earners and Youth

The Government of the Bask Region has initiated a process for a new regulation that will change the operation of Etxebide, the Registration System for Applicants of Protected Housing and Socially Equipped Accommodation. The most striking aspect of this comprehensive reform is that thirty percent of rental protected housing will be allocated to middle and working-income groups. Households with an annual income ranging between 20.000 and 46.000 euros are planned to benefit from this system. The Minister of Housing and Urban Agenda, Denis Itxaso, explained the purpose of the new regulation in detail at a press conference held in Bilbao. The Minister emphasized that they want to support sectors that are not traditionally considered vulnerable but face serious difficulties in securing housing under free-market conditions.

The regional administration specifically notes that this step does not eliminate the priority of families with the lowest income levels. On the contrary, the goal is to strengthen the current system's capacity to respond to the crisis and to protect broader segments that have difficulty accessing housing. Balancing the increasing housing demand and not excluding middle-income groups from public housing policies is one of the main motivations of this reform. Thus, while the rights of low-income citizens are protected, the middle class, which is squeezed by increasingly rising housing costs, will also be able to benefit from state support. Authorities believe that making the system more inclusive and fair will have a direct positive impact on social welfare in the region.

Another important innovation brought by the regulation is the introduction of a new mechanism for property owners whose current housing needs are no longer met. Accordingly, it will be possible to allocate protected housing to individuals who own a house that does not suit their family's requirements. However, to be able to transition to this new housing, the condition of surrendering, transferring, or incorporating the current property into the system for social use will be sought. With this application, both an increase in the housing stock held by the state will be prevented, and the conversion of idle buildings for social housing purposes will be encouraged. Thanks to the more efficient management of property distribution in society, idle structures are expected to directly contribute to solving the social housing crisis.

With the new decree, it is also aimed to create an intergenerational equipped apartment model specially designed for youth and the elderly. Within the scope of this innovative housing project, youth under the age of 36 and elderly individuals who can meet their own needs independently will be brought together in the same living spaces. For youth to be admitted to this system, they must have an income at the minimum wage level, and their upper income limit must not exceed 46.000 euros. This temporary accommodation opportunity is envisioned to help youth separate from their families, establish independent lives, save money, and transition more easily to permanent housing solutions in the future. Thus, both the economic empowerment of youth will be supported, and the integration of different generations under the same roof will be achieved.

The access age for elderly individuals to these special apartments is being reduced from seventy to sixty-five, aiming for a broader group to benefit. If an applying elderly person has a registered home in their name, they may be asked to transfer their property to the Bizigune program, subject to the condition of benefiting from this new housing model. This approach will directly increase the general supply of protected rental housing, helping to ease the market and completely transforming properties for a social purpose. On the other hand, with another planned regulation, it has been decided that the time spent in the registration system will allow a flexible transition between renting and buying preferences without causing the loss of accumulated points. Since the aforementioned new bill is currently open to public feedback, the final text will be formed in line with the public's proposals, and it is planned to enter into force soon.