March 4, 2021

The Tenants' Union celebrates the regulation of the rental price foreseen in the Budgets but does not believe that it stops the bubble

The Tenants' Union celebrates the regulation of the rental price foreseen in the Budgets but does not believe that it stops the bubble



Will the measures foreseen in the 2019 Budget on rents serve to stop the escalation of prices in the main Spanish cities? No, according to the Tenants' Unions of Barcelona and Madrid, which consider that the agreement between the Government and Podemos will not modify the "privileges" that the owner has over the tenant. Even so, they consider it positive to extend the duration of the contracts from the current three years to seven and that the municipalities can limit prices in certain areas of the city.

This entity, which was born more than a year ago to combat the abusive increases in rents in cities, believes that the agreement reached this Thursday is the result of pressure exerted by groups defending the right to housing, such as yours or the PAH. But he sees it as "insufficient". In fact, the Tenants' Union fears that the proposal has the "perverse effect" of "closing the rental problem false without undertaking a deep transformation of the Spanish real estate model or advancing in the de-commodification of housing".

In its evaluation of the agreement, the Union analyzes the two main novelties in the matter of housing: that the town councils will gain regulatory capacity and that the duration of the contracts will be increased. Regarding the second, they argue that although it lasts up to five years when the owner is a natural person and seven when it is a legal entity, it will not guarantee that the "rotation" of tenants will end. "This implies little more than returning to the situation of 1994", they specify, and defend that the continuity of the tenants in their homes should be protected provided that the "contractual obligations" are met.

The problem of "price control"

On the "control of prices", which may be exercised by the autonomous communities or municipalities, they believe that it is a "fundamental" measure, but they do not trust that it works as the Government proposes. The proposal included in the Budgets is that the Administrations can limit the price increases in areas called "stressed" and based on a reference price index. The problem, according to the Tenants Syndicate, is that this tool that makes a supposedly "objective" calculation of what the m2 must cost can "reflect" the prices of the current market, which they already consider abusive.

In addition to assessing what the agreement includes, they also denounce what it does not contemplate. For this entity, the "elimination" of the socimis (real estate investment vehicles with tax advantages) should be considered, the emptying of empty homes with specific measures should be accelerated or contemplation of the eviction stoppage.

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