Spain to finance 43,000 more social houses

The Spanish government will finance the building and revamping of 43,000 more homes for affordable rent, Prime Minister Pedro Sanchez said on Wednesday.

The planned new houses are in addition to a previously announced plan to convert 50,000 foreclosed homes under management by Spain's bad bank Sareb.

Sanchez said the government would use 4 billion euros ($4.38 billion) it is due to receive from EU rescue funds to lend to developers and owners to build and transform houses into social housing, rent them at an affordable price or transfer their use for at least 50 years.

"We are going to turn access to housing into a right and not a problem," he told the lower house of parliament, adding that the houses must be energy efficient.

Rising rents are set to become a key campaign issue as Spain gears up for regional polls on May 28 and for a parliamentary election later in the year.

Just 16% of young people in Spain live independently, compared to an average of 32% in Europe, according to the Observatory of Emancipation.

($1 = 0.9126 euros)