Strange as it sounds, Spain’s housing stock is still growing, thanks to the inertia in the construction industry.

The number of residential properties in Spain is still growing, despite the almost total collapse in new housing starts, according to the latest figures from the Ministry of Public Works (Fomento).

The housing stock grew by 181,071 homes in 2011, a rise of 0.7pc on the previous year, taking the total to just above 26 million for the first time in Spain’s history.

The housing stock has increased by 3.5pc, or 888,972 new homes, since the crisis began in 2008, despite a 95pc collapse in new housing starts. Thanks to the inertia in the home building industry it can take two years or more for declining housing starts to feed through into lower construction completions.

The housing stock exploded by almost 3 million homes, or 14pc, during the boom years between 2002 and 2007. There were 25 million homes in Spain at the end of 2007.