The Government has presented this Tuesday the State Draft Law for the right to housing, one of the key measures of the coalition Executive and which has entailed months of negotiations. A law that has been presented by the Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez; Although the approved text also bears the signature of the Minister of Social Rights and the 2030 Agenda, Ione Belarra.
The Government will have to negotiate with communities and municipalities 20,000 social rental housing paid with European funds
The draft defines housing “not as a market asset, but enshrined as a right granted by the Constitution,” said Ránchez. “It is a guarantee law, which protects the tenant and the owner, which protects private property and does not affect the powers of the Communities,” he stressed.
A text that is the “reverse path to liberalization and real estate bubbles” and that sets and defines what is a decent and adequate home, which must be habitable and accessible and allow access to basic supplies.
Raquel Sánchez has indicated that the processing will be through the urgent procedure so that it reaches the Courts before the end of the year. Our scenario and the date that we place the approval of the Law is in the second half of 2022. A date marked in the commitment of the Recovery Plan promised to Brussels.
The keys to the law
Two of the essential keys of the Law are linked to the creation of stressed areas, where it is intended that rental prices fall, and the figure of large homeowners.
As for what are stressed areas, they are defined as those where there is “a special risk of insufficient supply of housing for the population, in conditions that make it affordable for access to the market” and the Autonomous Communities will request their declaration, which can last three years, extendable.
To be a stressed area, two conditions must be met: that the cost of the mortgage or rent exceeds 30% of the average income of households in that area; and that the price of houses has increased by more than 5%, with respect to the CPI of that Community.
It will be in these stressed areas where special conditions are applied to large homeowners. Specifically, to those legal entities that have more than 10 homes for rent or more than 1,500 square meters of residential use.
Measurements for the great landlords
These large holders, in these stressed areas, will not be able to raise the rental prices in the contracts they already have in progress; and if they change tenants or contracts, they must link the cost of the rent to a benchmark. An index that has not yet been defined because the Government partners have given themselves a period of 18 months, from the approval of the Law, to decide how it is going to be configured.
“It is a maximum term but we must attend to the reality of setting a system that is complex and must be done well, from the analysis of each territory. There are communities that have registries and bail deposits,” the minister clarified.
In these stressed areas, small owners also have limitations in raising rental prices, except for the CPI. Although they can. It will be allowed to raise this rent up to 10% if different conditions are met, such as carrying out long-term contracts (more than 10 years), carrying out works to condition the house or improve its energy efficiency.
In addition, the aim is to increase the supply of real estate in these areas, with tax incentives for small owners. They can sign up a bonus in personal income tax, of up to 90%, if they lower the rent by 5% compared to the previous contract. If they rent to people between 18 and 35 years old, the discount will be 70%; and if the housing is used for social rent, the tax advantage will be 70%.
More affordable housing
Precisely, the Law also seeks to increase the supply of social housing, at affordable prices. To do this, 30% of the new developments will have to be reserved for protected housing, in exchange for compensating the developers, for example, with land. A percentage that can be lowered.
The “legislation may also set or exceptionally allow a lower reserve or exempt them for certain municipalities or actions, provided that, in the case of actions of new urbanization, the management instrument guarantees full compliance with the reserve within its territorial scope. of application and a distribution of its location respectful with the principle of social cohesion “, includes the text approved by the Ministry of Transport, Mobility and Urban Agenda and that of Social Rights and Agenda 2030.
The text approved today in the Council of Ministers and which begins a parliamentary procedure that can last a year, allows municipalities to apply an IBI surcharge to empty houses. A measure that, for example, the Madrid City Council has already ruled out.
They may raise the IBI by 50% if the house has been empty for more than two years, without just cause, and belongs to an owner who has four or more properties for residential use. If it has been empty for more than two years, the increase can be 100% and if you are an owner with two or more properties in a municipality, the increase can reach 150%.
The new text also raises the protection of people in vulnerable situations who are evicted. In this case, for there to be eviction, a housing alternative must be enabled.