Spain Bans Vulture Funds From Buying Cheap Homes
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Spain's government has approved a new housing decree with several measures to protect people who need homes. One key rule stops vulture funds from buying properties for less than 70% of their market value.
Vulture funds are large investment funds known for buying properties, debts, or other assets at very low prices, often to sell them later for profit. Critics say this practice can push families out of their homes and raise housing prices in a neighbourhood.
The new decree also changes how rent prices work. A new index will be used to decide whether rents can rise before 2028. This index will set a maximum rent price depending on where a property is located.
Because Spain has very different housing markets across its regions, the maximum rent price will not be the same everywhere. People will be able to check the highest allowed price for their area.
The government presented several other measures as part of the same decree, although the source did not give full details of all of them. Officials say the goal is to make housing more affordable and to reduce speculation in the housing market.
Housing costs have been a major concern in Spain in recent years, with rents and property prices rising quickly in many cities. The government hopes these new rules will slow that trend and give more protection to tenants and buyers.
Vocabulary10 words
- decree
- an official rule made by a government
- vulture fund
- a fund that buys things cheaply, often from people in trouble
- market value
- the normal, fair price of something
- investment fund
- a company that manages money to try to make a profit
- index
- a system of numbers used to measure or compare something
- region
- an area of a country with its own features
- housing market
- the buying, selling, and renting of homes in general
- tenant
- a person who pays to live in someone else's property
- speculation
- buying something hoping its price will rise quickly
- affordable
- cheap enough for most people to pay
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Quiz
Answer key
1. To stop funds buying homes far below market value 2. Decide if rents can rise before 2028 3. False
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Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Spain's government has approved a new housing _____ with several measures to protect people who need homes.
One key rule stops vulture _____ from buying properties for less than 70% of their market value.
Vulture funds are large investment funds known for buying properties, debts, or other _____ at very low prices.
Critics say this practice can push families out of their homes and raise housing prices in a _____.
A new _____ will be used to decide whether rents can rise before 2028.
This index will set a maximum rent price depending on where a property is _____.
Because Spain has very different housing markets across its _____, the maximum rent price will not be the same everywhere.
Officials say the goal is to make housing more _____ and to reduce speculation.
Housing costs have been a major concern in Spain, with rents and property prices rising quickly in many _____.
The government hopes these new rules will give more protection to _____ and buyers.
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