Outline of the LRAU and LUV land laws:
The ‘Ley Reguladora de la Actividad Urbanistica’ (LRAU), was set out
by the Valencian government in 1994 to ensure developments were built
with sufficient public services. This particular version of the law only
applies to the Valencian Community, i.e. the provinces of Alicante,
Valencia and Castellón. In location terms this means the Costa Blanca
and the Costa del Azahar, plus inland areas. The law does not affect
anyone with an interest in property in an area already urbanised
(virtually all apartments, townhouses and other linked properties, plus
the large majority of villas. If you are looking to purchase a property in
this area, consider 'urbanisation' status and, (as with any property
purchase) enlist the services of a good independent lawyer with
experience of this law.
The new Valencian Land Law (LUV), which will eventually replace the
controversial LRAU, is set to take more empathic action to boost the
construction of VPO subsidised housing in all all municipalities where
plan parcial development schemes are approved.
Property & developments in the Valencian region:
From January this year, a law included in the regional budget establishes
that all municipalities of over 10,000 residents must earmark at least
10 per cent of Plan Parcial development schemes - public or privately
promoted – for VPO housing. Certain Costa councils such as Finestrat,
Benitatxell, Orcheta and Alcoy have already taken this measure on board,
however others still turn a blind eye to the need for subsidised housing
aimed at families with lower income and young people entering the
housing market.
For this reason, the LUV law will include a specific article whereby all Plan
Parcial schemes must include 10 per cent of VPO housing. Councils will
be given a maximum of two years to comply with the law by building VPO
homes on the land developed or on other sites. If the 24 month period
expires without any subsidised housing projects approved, then regional
Public Works will be entitled to expropriate land in the municipality
- owned by the council or by private Plan Parcial developers - to carry out
such schemes.
This latest addition to the LUV, currently under study in Valencia, comes
after it was revealed that over the past two years, 80 per cent of town halls
in the Valencia Region have failed to promote VPO housing despite
approving hundreds of LRAU-backed development schemes. One of the
main reasons given by politicians at the time to approve the LRAU was to
release land for the construction of housing for those with lower incomes –
a target which the controversial law has obviously failed to achieve over
it's years in application.
Update - May 15th 2004:
Recent protests by the main action group against the LRAU and the LUV,
land and development laws (the Abusos Urbanisticos No - AUN) increased
pressure on local and provincial Valencian government by holding various
protest demonstrations against these laws in Valencia. Demonstrations
were also seen in other areas such as Calpe, Javea, Denia and Gandia.
Note: The information set out above is our interpretation of the various laws and
regulations surrounding the various land laws governing property purchase
in Spain and the Valencian communities. The detailed information has been
checked by us, so that as far as possible, all information is correct at the
time of publish. However Charterhouse Homes cannot accept liability for any
inaccuracies or change to the information provided.
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LRAU & Valencian Land Law (LUV)
