The Minister of Transport, Mobility and Urban Agenda, José Luis Ábalos, has rejected this Monday rent price control in the future Housing Law, as proposed by its government partner, Unidas Podemos, and has opted to promote tax incentives, for which it still awaits the approval of the Ministry of Finance.
At a press conference after the Federal Executive of the PSOE at the party’s headquarters in Madrid, Ábalos has acknowledged that, in terms of “price intervention” both formations they have “two different conceptions” and, where appropriate, they consider “more positive and effective to promote than not to impose.”
“Logically, the most witty are tax (incentives), although there may also be other measures, which not to impose,” explained the Minister of Housing powers, who has warned that, with price control, there will be a market detraction “in which” many of those homes that could be used for rent end up in the sale.
In the coalition government agreement, the PSOE and United We can agree to promote “the necessary regulatory measures to put ceiling to abusive rises»Of rent and empower town councils and communities to« regulate abusive increases in the rental price in previously declared areas », and in the Budget agreement both formations agreed to« regulate the containment of rental income in the Housing Law ».
Ábalos has also stressed that the new norm “respects constitutionality”, since “maximalist precedents have already achieved the position of the Constitutional Court” and also that the law “takes into account that it is a right but also a market good that generates activity economic, which also seeks legal certainty regarding investments and we cannot ignore all that.
Also, during his speech, Ábalos has assured that the PSOE defends a housing policy “that commits the public powers and does not transfer that responsibility to individuals, whether they are more or less solvent.”
“We do not think that individuals have to resolve the public housing policy, but rather the one that corresponds, which is the set of administrations“, The minister added, assuring that, when the prohibition of evictions is proposed, it must be the administrations” that seek alternative housing. “
“We think that it is much more positive to incentivize than penalize, that there be incentives for these homes to be taken out of the rental market,” Ábalos stressed, ensuring that these incentives would be aimed at those owners who offer their home “no longer below the price of market, but below the benchmark indices that the Ministry publishes.
The minister explained that in the Government both the PSOE and United We can agree “on the objectives of what the Housing Law should regulate”, but that “there may be differences in the tools to achieve the objectives.”
On the other hand, Ábalos, who has offered the press conference as Secretary of Organization of the PSOE, has ensured that the new norm “cannot be a conjunctural law or pressed by very specific and very temporary situations.” “We will have to enter into the structural, and even into the framework that allows the adoption of temporary measures, but that the situation does not condition us in that basic law of democracy,” he said.
And it is that the Minister of Transport has stressed that “it is good for the country to have a Housing Law” and that “in these 40 years of democracy there has not been“, But has added that” if in 40 years it has not been done, to make a bad law there is no reason to run. “A law is needed, but a good law,” he asserted.
The control of prices in the rental market has been a constant battle between the PSOE and United We Can, which however have been agreeing since 2018 measures to contain prices, the latter in the coalition government agreement itself and to move forward the General State Budgets of 2021.
In that last agreement, both formations agreed to “regulate the containment of rental income in the Housing Law” and enable in it “containment mechanisms, or possibly lower prices of both new and existing contracts” and, starting from the reference prices «contain unjustified increases».
That agreement, reached at the end of last October, gave a maximum term of three months to bring the Law to the Council of Ministers and present it to Congress in a maximum of four, therefore, by virtue of that period, the Government should have presented the regulation before the end of January.