These are the measures with which the Government will intervene in the rental market



The Government wants to encourage rent in Spain as a measure to solve the problem of access to housing. But, According to the experts, the interventionist proposals he is announcing go in the opposite direction. Today, the second vice president, Pablo Iglesias, announced on Twitter that the Executive Tomorrow will approve a royal decree law that will establish a moratorium against mortgage evictions of four years. Iglesias has explained that the decree also the number of households that may qualify for this moratorium will increase, “expanding the assumptions considered vulnerable, such as single-parent families with dependent children.”

Prohibit evictions for non-payment

In addition, Iglesias has announced that they will be introduced Changes in the Law of Urban Leases to launch «Concrete measures to curb evictions for non-payment of rent», which, according to Iglesias, “is already the majority of those produced in our country.” In this regard, the leader of Podemos has ensured that it has been agreed «Prohibit evictions for non-payment of rent in stressed market areas and in cases that are related to vulture funds that do business with a basic right».

Limit uploads

To delimit the stressed market areas, the Executive will use the Reference Index of Rental Prices that the Ministry of Transport, Mobility and Urban Agenda is preparing and will announce before the end of the month. This indicator will serve as reference to the autonomous communities and municipalities to limit the price increase also in those areas of the market stress. The Minister of Transportation, José Luis Ábalos, announced a couple of weeks ago in Congress that the law will be ready before summer that will enable communities and municipalities to limit increases if they wish. Some, such as the Community of Madrid, have already assured that they will not restrict the price of rentals.

Sale of public promotions

In his parliamentary intervention, the Minister of Transportation also announced that measures will be articulated to “Avoid the alienation of the public housing park” as happened in the past, in clear allusion to the operation executed years ago by the Madrid City Council.

The sector, outraged

According to Iglesias, government measures “will alleviate the situation of thousands of families who were not currently seeing their constitutional right to housing guaranteed.” According to the sector, the only thing they will do is to laminate the already scarce Spanish rental market. Antonio Carroza, CEO of Rental Insurance, said that if evictions are limited “per se”, the offer will be contracted and the prices will rises, especially if it goes against large housing holders.

Mikel Echavarren, CEO of the real estate consultancy Colliers International, has said that the offensive against the funds is “insane.” «If someone doesn’t pay me the rent, I have to kick him out. And if the government doesn’t want me to throw it, the government pays my rent. But you can’t say that with my private good I have to keep someone who doesn’t pay me, ”he said. In his opinion, the announcement of the Executive is a “bulk error that is only explained because these types of measures give votes and do not cost the Government or a euro in the budget,” since its negative effect will be to reduce the offer , «Just the opposite of what the market needs» for housing, according to Efe.

Experts predict that, to the extent that they are perceiving uncertainty, investments of insurers and long-term individuals will be withdrawn. Other sources in the market ensure that there are real estate agents that already take measures to avoid evictions in cases of families in vulnerable situations, such as low income with minors, sick people or the elderly. In these cases, they agree on social rents below the market or other types of aid “with little support from the public sector,” they complain.

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