Andalusia’s new Housing Law comes into force: what it means for buyers and renters

Andalusia’s new Housing Law has now come into force, through which the government of Juanma Moreno aims to ease the housing crisis and reduce the region’s housing shortfall, estimated by the Bank of Spain at 90,000 homes.

Law 5/2025, approved by the Andalusian Parliament on 16 December and announced by the regional president in September 2024, introduces a series of changes whose main objective is to increase the supply of protected housing (VPO) in the region, both for sale and for rent.

Priority areas

First, a new category known as priority areas will be created. These are zones with greater difficulty in accessing housing, where “all resources will be concentrated in the form of rental assistance, purchase grants or incentives for new-build development or refurbishment”, as explained by Andalusia’s Regional Minister for Housing, Rocío Díaz, during the parliamentary debate.

“Priority housing areas are defined as those in which priority is given to access programmes under the current Andalusian Housing and Land Plan, concentrating the different possible schemes for rental support, first-home purchase assistance and the increase in housing supply for both sale and rent, through the promotion of new-build housing in its various forms, or the acquisition or allocation of existing homes for this purpose, as well as the possibility of constructing or refurbishing affordable housing, community residential housing, protected housing or serviced accommodation,” states Article 21 of the new law.

More VPO through higher buildability and density

One of the most talked-about measures is the increase in density and buildability for projects intended for protected housing:

“The declaration of priority housing areas, at the proposal of local councils, may encourage the construction of protected homes on plots zoned for private housing by increasing the maximum number of dwellings by 20% and buildability by 10%, without the need to amend urban planning instruments.”

With the aim of expanding the social housing stock, the regional government, through Decree-Law 1/2025 on urgent housing measures, in force for almost a year, already allows changes of use from tertiary to residential without modifying planning regulations, provided they are destined for VPO. The initial target was 20,000 homes over the next five years, a goal that has now been raised to 40,000 units.

Public–private cooperation

Another key pillar repeatedly highlighted by both the minister and the regional president is public–private collaboration:

“Public–private cooperation is encouraged, including third-sector organisations, to continue promoting affordable rental housing, as well as collaborative management formulas for specific groups supported by the third sector or sharing the same objectives.”

The text itself states that “models of collaboration with private initiative will be implemented to facilitate access to rental housing, through agreements for construction, developer incentives, concession models (on public or even state-owned land for residential, public-service or, where appropriate, tertiary use) or surface rights, which involve the reversion of the built homes to the public authorities once the concession or surface-right period has expired.”

It also includes the possibility of granting public land for protected homes for sale:

“Public–private cooperation may likewise be used to promote housing for sale by offering public land, setting specific access requirements and prices or other formulas aimed at placing protected or affordable homes on the market.”

Creation of a public land bank for VPO

Another widely supported measure among local councils is the creation of a public land bank for affordable housing. In practice, any municipality with unused land may offer these plots to the competent regional department so that private protected-housing projects can be developed on them.

Measures against illegal occupation

On the issue of squatting, Chapter III establishes:

“A Coordination Commission on Evictions and the Fight against Illegal Occupation will be created as a collegiate administrative body, made up of public agencies involved in housing, social services, finance, justice and internal affairs. Its purpose will be to establish guidelines and recommendations for coordinating information, advice and actions to prevent illegal occupation and to provide joint housing solutions in situations of eviction and social vulnerability.”

Along the same lines, anyone convicted of unlawful entry or illegal occupation of property will be barred from accessing any form of protected or social housing.

Changes to the rental market: the deposit obligation disappears

Another announced change, explained by lawyer Jesús Prieto, is the removal of the obligation to lodge rental deposits with the Andalusian Housing and Refurbishment Agency (AVRA). Instead, the landlord will retain the initial amount paid by the tenant.

“The rule makes no distinction between residential and non-residential use. Therefore, leases of commercial premises, offices and industrial units are also exempt from the deposit,” Prieto stressed, adding that the law is not retroactive, so deposits already lodged will remain with AVRA.

Refurbishment

Another major focus of the Andalusian government is refurbishment, and not only in structural terms:

“For the purposes of this law, refurbishment actions are considered to be those aimed at improving, adapting, conserving or functionally, constructively, energetically, environmentally or socially recovering the existing building stock and its urban or rural surroundings, in order to guarantee sustainability, accessibility, habitability and safety.”

Improvement works on existing buildings are made more flexible and encouraged. Horizontal divisions may be redistributed, and in run-down areas with no available land, increases in buildability are permitted to improve housing quality. Works intended to improve energy efficiency, accessibility or habitability will not count towards maximum buildability.

Urban regeneration and renewal areas will also be created, and the relevant public authorities will be required to report zones suffering from serious social exclusion or substandard housing.

The Moreno Bonilla government states that this new law is intended to “correct the effects of the national Housing Law, which has led to rising prices, a fall in supply, legal uncertainty for owners and an increase in illegal occupation”.

Overall, Andalusia aims to cut red tape, speed up the development of available land and, above all, increase the region’s housing stock in southern Spain, both private and protected.