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Spain to use state land for subsidised housing

Published 11/08/2008, 09:56 AM
Updated 11/08/2008, 09:58 AM

MADRID, Nov 8 (Reuters) - The Spanish government has approved measures to use state land in its plan to increase subsidised housing, Deputy Prime Minister Maria Teresa Fernandez de la Vega said on Saturday.

State land which is not currently in public use will be managed by a government commission set up to accelerate construction of housing projects, she told a news conference after a cabinet meeting.

The government promised earlier this year to increase the production of state-subsidised housing for rental to 150,000 homes per year from 100,000.

The public land which could be used for housing projects is currently controlled by the defence ministry and located near Madrid, Valencia and Seville.

De la Vega said the government has also approved housing ministry plans to acquire up to 430 million euros' worth of land for public use from housing developers, but noted that this figure could be increased over the next four years.

In the midst of a domestic property crisis which has left developers with serious financing problems, the government is planning to invest 2.8 billion euros in the purchase, zoning, construction and promotion of new subsidised homes.

(Reporting by Carlos Ruano; writing by Jonathan Gleave)

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