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The lack of labor slows down the distribution of EU funds to rehabilitate flats

Date: June 25, 2024 Time: 15:23:51

Housing construction is facing one of the most tense problems in recent times. A year ago the lack of supplies and materials became a dilemma; however, today there is a lack of labor and qualified personnel for construction. This has caused different projects to stop, and especially when it comes to renovating homes. The latter draws on the Next Generation European Funds because they are part of the measures of the Recovery, Transformation and Resilience Plan of Spain. The challenge he now faces, according to experts, is that staff shortages are delaying the distribution of housing renovation funds.

“The problem is that delivery is slowing down due to the lack of labor in the sector. Many millions of euros are arriving in Spain and almost everything has to go through the real estate sector. We only need people to continue working”, the president of the National Construction Confederation (CNC), Pedro Fernández, told this newspaper. The EU funds allocated to this type of area have the objective of reducing the consumption of non-renewable energy in homes, as well as decarbonizing and achieving the objectives proposed by Brussels for 2050.

Due to this, the Recovery plan itself has a total budget of 3,420 million euros for rehabilitation divided between subsidies and personal income tax deductions. Specifically, there are 2,970 million in aid, 1,100 million in guarantees from the Official Credit Institute (ICO) and 450 million in deductions. All this investment money is channeled through the autonomous communities. However, this money has not been able to move much due to the problem detected by agents in the sector, and for several months they have called for the search for personnel, but for various reasons the industry “has been demonizing itself”, ditch Fernandez.

“Labor is very low and has not allowed us to progress as we would like,” says the president of the CNC. In addition, he clarifies that this is the main problem of the private sector. In order to solve it and get ahead, the entity has requested a crash plan so that new groups are included in the ecosystem. First of all to women. Currently there are only 11.1% of them in the sector and they believe it is necessary to include them and add new workers. Secondly, they insist on adding young people because the youth unemployment rate reaches 30% according to the latest data, which is worrying and adding them to the construction sector is key, according to comments from the CNC.

Thirdly, in Spain there are more than 2.7 million unemployed and also considering it important to include this group to further reduce both problems. And finally, Fernández would integrate immigrants: “According to Social Security there are between 300,000 and 600,000 irregular immigrants and by letting them get into the construction sector we can help to regularize many of these situations,” he affirms. On the other hand, he points out that another way to start creating opportunities is through information. “We have to start informing everyone about the sector, that we are modern, sustainable and stop demonizing it.”

The experts ask to include four new groups in the sector so that there is more labor: women; youths; unemployed, and immigrants.

In addition to the Next Generation, there are various plans to help rehabilitate floors. For example, this year the General State Budget (PGE) raised housing rehabilitation as a priority in the sector. The idea is to promote this recovery of floors to improve their efficiency and accessibility. The PGE anticipate covering between 40 and 80% of the total cost of the work. In the capital there is the ‘Plan Rehabilita Madrid 2022’, which are municipal aid for the repair of residential buildings and in recent years a special subsidy for energy, photovoltaic and renewable communities has been included.

The amounts will vary depending on the areas, but range from 4,000 euros per home to 10,000 euros. It includes aid of up to 80% for solar roofs and photovoltaic panel installations, or for those who have systems based on renewable energy. At the national level, there is also the Housing Rehabilitation and Urban Regeneration Plan, which aims to boost the rehabilitation of the building stock in Spain in line with the European ‘Renovation Wave’. This plan has a total investment of 6,820 million euros. But although this type of aid exists, the experts place special emphasis on providing training, adding new actors and “also that there is greater political will in this regard,” concludes Fernández.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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