With the PSOE studying the measures in place to see if something can be done to halt evictions, the Socialists has called for nationalized banks to draw on their pool of repossessed/unsold properties to help with crisis hit communities.

The Socialists has made a non-legislative proposal to congress in whereby they have made calls for the use of real estate assets of the audited entities to form a public rental fleet. They have also requested that all banks that received public subsidies should accept payments in kind, during the time in which the PSOE studies initiatives to stop evictions.

If this measure is put in place, then a public rental scheme will allow many citizens to live with dignity "without huge financial burdens to pay for housing" and in turn this will help create a balanced society that has economic and urban stability.

On the other hand, the PSOE has announced that work has begun on a bill with measures to put an end to evictions. Contained within this bill will be a defined procedure prior to the bankruptcy court. However, the Socialist Party argues that the measures taken so far have been "insufficient" to resolve the situation of the mortgagor.

The mortgage debt of households fell by 2.4% in May. As the mortgage market continues to decline, the month of May saw a decrease, which has left the debt at 656.818 million Euros, representing 76.8% of total household debt.
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This ratio remains as high as it has been for several years, which is in line with the drop in housing investment that the country has experienced. Therefore, the amount that families spend at home takes up most of their savings.
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Overall, the household debt fell by 0.14% month on month, which already has six months of consecutive declines. In total, the debt stood at 854.616 million Euros, the lowest level since September 2007, when it was 854,095,000. On year, the household debt fell 2.8% especially burdened by the decline in consumer credit (-4.2%).

This article has been compiled by HomeSearch Barcelona, a unique property professional that specialises in being the “buyers real estate agent”.

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