The Government of Navarra is negotiating the buyback of around 600 rental homes that have lost their status as VPO (protected social housing) and passed into the ownership of large investment companies. The minister responsible for housing, Begoña Alfaro confirmed on 30 September that talks were under way with several owners, including Testa, a company linked to Blackstone. The aim, she said, was to prevent a sale to third parties and protect tenant households whose contracts could come under pressure following changes of ownership.
The draft of the 2027 budget sets aside a special allocation of €22 million for the possible purchase. Part of last year’s surplus is also to be used, although the government has not yet given the amount. Alfaro described it as a politically uncomfortable but, in her view, necessary solution: it is regrettable to effectively pay twice for the same homes, once publicly funded, but the social consequences for the families concerned are what matter most.
The initiative addresses a gap in earlier rules: housing built years ago with public funding could enter the open market once its protection period expired. In Navarre VPO rental housing is now also permanently protected, but many properties had already lost that status. According to the government, Testa is willing to sell because expected returns in Navarra have fallen. Reasons cited include the designation of certain municipalities as “zonas tensionadas” and the associated rent controls.
The talks cover prices, numbers of homes and a timetable. Legal and financial details have yet to be settled; no draft contracts have been made public. One thing is clear: a buyback would tie up public funds in the short term, but could safeguard public or publicly controlled housing and stabilise tenants’ rights. Whether, and to what extent, the purchase is worthwhile will depend on the prices achieved and future occupancy and rental terms.
The issue is politically charged in the regional context. The housing department is the only department in the government headed by Contigo/Zurekin . The coalition had promised to halt the loss of social housing and return properties to public ownership where economically viable. Opposition figures had warned in earlier debates against “expensive buybacks”, arguing instead for tighter regulation and new construction. The government says both approaches are being pursued in parallel: permanently restoring protected status to existing properties and expanding new social housing in Navarra.
Editor: Mira Cadena (Article created with AI assistance).