Spanish budget proposals have announced the introduction of measures to encourage the use of properties for rental.

Key measures in a new legislative package include direct accommodation subsidies for 22-30 year-olds in rental property, with tax relief also offered for all tenants.

Meanwhile the province of Andalusia, home to high-demand areas like the Costa del Sol, is to provide social housing for those priced out of the market, with rental homes costing no more than a quarter of earnings promised for those making below 500 euros per month.

The new measures seek to ease up the property market and to encourage property investors, from both Spain and abroad, to use their houses for rental purposes.

Subsidies mean that young locals will be more able to afford rent, but additional incentives for buy-to-let investors may also be given if the government yields to pressure to ease laws which currently make it difficult to evict those staying beyond tenancy.

The measures are likely to hold particular appeal for UK property investors in Spain looking to ensure stable year-round tenancy of houses and flats for the medium term, or even on a more permanent basis.