June 21, 2021

Real estate experts question the effectiveness of new housing measures

Real estate experts question the effectiveness of new housing measures

The Professional Association of Real Estate Experts (APEI) questions the effectiveness of the new measures of the Government in housing and rental, as it believes that "will not facilitate the increase in the supply of rental flats, or encourage the containment of prices" .

This has been explained in an interview with Efe its president, entrepreneur Rioja Oscar Martinez, in relation to the Royal Decree Law on urgent measures in housing and rental, which came into force on 19, and does not set limits to the rental prices.

For the APEI, which groups 1,200 real estate agencies active throughout Spain, "the only thing that can lower rental prices is the increase in supply and empty flats go to the market," he said.

This new regulation, which modifies, among others, the Urban Leasing Law, has said, "it does not favor a greater supply of rental apartments because effective protection measures are not contemplated for the private owners of empty homes".

"Quite the contrary: there are going to be fewer landlords who put their home for rent," said Martinez, who also assured that the measures taken "unbalance the legal position between landlord and tenant" and "the proposed tax incentives have little significance and they will not increase the exit of real estate to the market of the rent ".

The fact that the minimum mandatory duration in the rental of housing goes from 3 to 5 years "can favor individuals," he continued.

However, he has assured that "the extension to 7 years, when the landlord is a legal entity, is a mistake", since "it will stop the exit of houses for rent and we could even see how these companies or companies choose more for the sale that for the rent ".

Another measure contrary to the rent promotion, according to the Real Estate Experts, is the limitation of the additional guarantees for the owners who rent, Martinez said.

The new norm, has explained, "limits the guarantees that the tenant must submit to the bond of a maximum of two months."

Until the entry into force of the new measures, he recalled, "in certain economic situations, the tenant, upon signing a new contract, could present a guarantee or bank deposit to prove their solvency for the payment of the rent."

However, "removing this additional bond is an error because it allowed the owner to rent when the tenant was affected by temporary situations that could alter a regular income," he said.

In addition, it has emphasized that "it also harms the tenants because they can see that without these complementary guarantees they can not access the rent".

For Real Estate Experts, the norm also "forgets that many landlords are individuals who have acquired ownership of their home with many efforts and who desperately need the income from rent," he said.

Another aspect that Real Estate Experts can "complicate" the departure of apartments for rent, Martinez added, is the modification that contemplates the possibility of paralyzing the eviction procedures for one or two months, in case of situations of vulnerability of the tenant.

Pilar Mazo


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