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PoliticsBusiness233 words2 min read

Spain Bans Vulture Funds From Buying Cheap Homes

Two vultures perch atop a rocky peak
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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

1. What is one main goal of the new housing decree?
2. What will the new rent index do?
3. True or false: Rent limits will be the same in every region of Spain.

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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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