Thursday, December 2

The new housing law opens a war between the Government and the communities

The approval this Tuesday of the Draft of the Housing Law threatens to become a new weapon between the Executive and the autonomous communities in which the PSOE does not govern. The key, this time, focuses on the declaration of tensioned area. The application of this concept, focused on those urban centers that chain high rental prices, will allow owners to benefit from certain tax credits, which will vary depending on whether the price is reduced by 5% compared to the previous contract (90%), if the landlord is between 18 and 35 years old (70%) or if he has made a recent reform in his home (60%). However, as the competences in urban matters depend on the communities, only citizens who put real estate for rent in regions in which the rule has come into force because the autonomy in question has accepted it will be able to benefit from these deductions.

What in practice it means leaving out these bonuses to the communities in which the PSOE does not govern that have already announced their refusal to implement it, as is the case of Madrid or Andalusia, among other. Sources from the Ministry of Transport, Mobility and Urban Agenda indicate that their objective is “to establish a balance in stressed areas, we want there to be no speculation in prices … that there may be an increase of 10%, but not of the 20-40% that expel families from the rental market ”. However, they also recall that in communities that do not adhere to these regulations “they may apply other tax incentives in terms of housing.”

Sources of the real estate sector they point to EL PERIÓDICO DE ESPAÑA that “this regulation generates legal uncertainty and a polarization of investment towards those communities that do not apply it, as is the case of Madrid. We have the best example in Catalonia, where real estate investment has been reduced in recent years after the application of rental price limits. Investors do not like these interventionist measures, who seek a free market to invest in and demand legal certainty. Furthermore, we must not forget that investment is located in many more regions than Madrid and Catalonia. In the case of the coast, Andalusia may benefit in terms of investment compared to others such as the Valencian Community where they have shown more supporters of its application “.

The biggest affected will be the big forks, although it will not affect everyone equally. According to the definition contained in the preliminary draft, individuals or legal entities that have more than ten urban properties for residential use or with a constructed area of ​​more than 1,500 m² for residential use are classified as such (garages or storage rooms are excluded). However, only natural persons will be able to benefit from tax incentives for lowering the rental price, while legal persons (that is, companies and investment funds) will be affected by price limitations. From the Ministry, however, they have not wanted to reveal how the reference indices will be calculated and they are given until 2024 for the entry into force of this measure. Currently, the Ministry estimates that 85% of the floors in stressed areas are in the hands of private individuals. Asval, the Association of owners of Homes for Rent, points out that “this measure will mean a reduction in the supply available in the rental market and will limit investment to improve the current residential real estate stock.”

Different times

On the other hand, financial sources also indicate that “it is about an electoral measure that will hardly see the light of day, but in this way they show that there is a commitment with their voters to lower prices”. In any case, the times that the Government manages indicate that the norm will complete its parliamentary approval “in the second half of 2022”, according to the Minister of Transport, Mobility and Urban Agenda, Raquel Sánchez, during her intervention in the conference press after the Council of Ministers. And, from there, it will take 18 months until all the key aspects of the law are delineated. In this context, other sources consulted indicate that “it will hardly be ready before the end of the legislature.”

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