More legal security, more public-private collaboration, minus “star measures” and nothing to limit rental prices. This would be, in summary, the generalized position of the real estate sector regarding the latest measures implemented by the Government in terms of housing and the future Housing Law negotiated by the PSOE and United We Can.
Several of the main representatives of the sector (among whom there was no woman) have expressed it this Thursday at the meeting The real estate sector after Covid-19 organized by Asval (Association of Rental Home Owners) and Europa Press, in which they also had the support of the Vice President of the ECB, Luis de Guindos. Among other things, the also former Minister of the Economy of Spain has highlighted the need to guarantee legal security in our country to favor the housing market and access to affordable rent.
“Legal security is essential. Sometimes you think about tax formulas, but I think that the guarantee of a stable, reasonable legal framework that favors the rental offer is the basic element to have a wide rental market with reasonable prices, “said Guindos during his intervention in the virtual meeting.
The request for more legal security has been unanimous among all those appearing, from the president of Asval, Joan Clos, which has underlined the need for “a change of course in housing policy in Spain”, until Juan Pablo Vera, CEO of Testa.
There are more and more measures that limit the right to property, they are almost expropriating. It is difficult to understand the measures that favor squatting with ‘k’
In her case, Vera has underlined the impact that regulatory changes have on the image that investors have of our country. “There is a clear perception of legal insecurity. There are more and more measures that limit the right to property, they are almost expropriating. It is difficult to understand the measures that favor squatting, with k”, he said.
According to his experience, “it is becoming increasingly difficult” to explain to investors the measures that are being taken or the measures that are to come, hence the need to “project abroad an image of a reliable country in the one that can be trusted because that will also help us out of the crisis “.
Along with legal security, the other major claim in the sector has been the rigor and seriousness when it comes to proposing housing policies and the future regulation that will regulate the sector. “We need a coherent and consistent policy over time. A policy other than star measures “, has sentenced the director of Testa.
And also forceful has been Joan Clos himself in this sense. “The law must have important rigor, it cannot be done in an improvised way because, the more improvisation, the more risk there is that the result will also be improvised. Transforming the residential sector in Spain is not a minor issue not easy. The important thing is not to regulate based on occurrences“, has said.
Limit rents
Negotiations between PSOE and United We Can to enforce the future Housing Law are frozen until after the Catalan elections on February 14. Among other issues, the law will contemplate limiting rental prices to try to control the increases in recent years, however, it is unknown what mechanisms will be applied to limit it.
The problem in Spain is that there is a lack of supply and any regulation that prevents the supply from developing is contrary to the general interests
“It is not reasonable that price control mechanisms are applied. The problem in Spain is that there is a lack of supply and any regulation that prevents the supply from developing is contrary to the general interests “, he assured Josà © García Montalvo, Professor of Economics at Pompeu Fabra University.
The measure has been rejected from the first moment by the owners, especially by the big holders, and that was also clear this morning. Like the rejection of other initiatives of a more interventionist nature that Pablo Iglesias’ party has put on the negotiating table.
“The law should not penalize empty housing, or penalize the owner against occupying. Nor should it regulate the rent because prices are already self-regulating and Spain needs time to agree on these systems,” he stated Eduard Meniluce, CEO of Aliseda Inmobiliaria and Anticipa Real Estate.
On the contrary, Mendiluce bets because the norm “Yes, it should consider fiscal and tax incentive measures” how to establish incentives for homeowners who rent below market price.
Take advantage of the aid
European aid and the idea that part of the funds should be channeled to the real estate sector have also crept in in their analysis and in that of the rest of the attendees, as it can be a pillar of the economic recovery after the pandemic.
It will be at that moment when the problems of many families come to light in terms of housing and that is why they consider that the Government must be prepared to support them.
“The evictions will come mainly due to non-payment of rent and we must start thinking about formulas for after the crisis, “Mendiluce stressed.
His proposal, in line with Asval’s, is to provide a fund to help families who are having a worse time. A background of 750 million euros, as you have specified. “It is not worth borrowing more with ICO credits or rent moratoriums. The deciles with the lowest income are having and will have more problems to face the rent,” he said.
In this sense, the economist Ignacio de la Torre, a partner of Arcano, has suggested “carrying out an urban regeneration plan that prioritizes rent; use the funds to rejuvenate the public building stock and channel part of the aid to develop a scheme help to buy“the way it exists in other countries like the UK.
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