16,300 squatters in Spain secure rental contracts for the pool villas they occupied

Sareb has managed to get 16,341 families who occupied its properties to now pay rent, most of them on social, affordable terms.

## Turning squats into tenancies

**Sareb**, the bad bank set up to clean up Spain's financial system after the crisis, has found a way to manage the properties that ended up occupied. Since **2020**, it has got **16,341 families** who moved into its properties without permission to now pay a monthly rent. Most of these agreements, specifically **7,937**, were reached in **Catalonia**, and are based on social rents at very low prices. This means that, instead of carrying out full evictions, an intermediate solution is sought that benefits both sides, at least in theory. The cost of these social rents is not fixed; it is usually calculated as a percentage of household income, ranging between **10% and 30%**, and generally falls between **150 and 300 euros** a month.

## A programme with a social focus

This shift in Sareb's strategy is no accident. In April **2023**, the Spanish Government approved a plan to mobilise up to **50,000 Sareb properties** as affordable rentals, aimed at vulnerable families. What is striking is that a significant share of these homes have ended up in the hands of those who had previously occupied them. The process for accessing these regularised homes begins with a thorough gathering of information about the family occupying the property or in an irregular situation due to non-payment. The aim is to identify vulnerable individuals and families in order to offer them a housing solution. Once identified, they are offered a social rent, which averages around **200 euros**. Most of these new tenants, in **70%** of cases, are single-parent households or single-family units, with average incomes of about **896 euros** a month, of which **55%** comes from public benefits such as the Ingreso Mínimo Vital (Spain's minimum income scheme).

## Sareb's vetting process and its results

Sareb's procedure involves a detailed analysis of each occupant's situation. If they are found not to be vulnerable, or fail to cooperate with social mediators after several attempts, the property is repossessed. In most cases, around **80%**, this recovery is carried out amicably. When that is not possible, legal action is taken. Sareb's **2024** annual report notes that this policy has moved the company from reactive management, with defaults and asset deterioration, to a housing portfolio with regularised contracts. This has not only improved the valuation of the affected housing portfolios, but has also prevented an estimated deterioration of more than **350 million euros** in **2022**. The social rent programme, which started in **2022** with around **9,000 assets**, has kept growing and by **2024** covered some **16,000**, of which **13,000** were homes. During **2024**, **2,186 social rents** were formalised and **2,264 families** joined Sareb's Support Programme.

## Job placement and neighbourhood improvement

Beyond regularising rents, Sareb's programme includes social support and, in many cases, job placement. Of the families that joined the Support Programme in **2024**, **1,440 people** enrolled in the Employment Integration Programme. Although some dropouts have been recorded, the number of employment contracts signed has been remarkable, reaching **385**. The sectors that have taken on most of these new workers include hospitality, cleaning, retail and transport. The improvement is not limited to the beneficiary families; a positive impact is also seen in the local area, with better community coexistence and very low arrears rates among regularised tenants.