Post by account_disabled on Mar 13, 2024 0:14:59 GMT -6
The new Law for the Right to Housing has brought with it strong criticism of the possibility of imposing limits on rental income in areas that are declared stressed. Real estate associations, property consultants and agents, banks and even the Bank of Spain warn of the possible opposite effect that price control could have on the rental offer. Also, they question whether regional powers are invaded , in addition to the confiscatory nature of empty housing, not fighting against squatting and not addressing the professionalization of the sector.
The Bank of Spain (BdE), Ibercaja, the Association Phone Lead of Developers and Builders of Spain (APCE), the General Council of the Official Associations of Real Estate Agents (COAPI), the Rental Negotiation Agency (ANA), real estate lawyers , associations and real estate platforms, the acronyms crowd the experts who have not given their opinion on the new Housing Law, which will soon come into force.
On this occasion, the criticism is widespread of a regulation that for the majority means the intervention of the free rental housing market, and burdening the owners, mostly small holders, with impositions to reduce the price tension due to the lack of residential policies, which have not been applied during all these years by any political party.
The Bank of Spain itself , in its 2022 Annual Report of the Bank of Spain , emphasizes that "there is no miracle formula to resolve the imbalances in access to housing." In its report, the BdE assesses the future Law for the Right to Housing . He recognizes its "emphasis on the necessary increase in the supply of rental housing", although he questions some measures, such as rent control, which "could generate undesired effects in the medium term.
"Economic literature has pointed out that, although price controls show the ability to reduce short-term rental prices in regulated areas, this policy can generate adverse effects on rental supply, as well as segmentation in the real estate market" , emphasizes the document.
Among these "adverse" consequences, the supervisory body alludes to the reduction in the number and quality of homes available on the market, changes in the composition of supply and price increases in unregulated segments.
And it recommends avoiding measures that asymmetrically distort price signals, reinforcing the effective legal security of rental homeowners and reducing regulatory uncertainty in this market.
The banking sector, through Ibercaja , also raised its voice against the new law and its CEO, Víctor Iglesias , went so far as to state that the rental problem in Spain "must be tackled" with an increase in the offers of available homes. for this purpose, "more than limiting or limiting the amount of the rent.
The Bank of Spain (BdE), Ibercaja, the Association Phone Lead of Developers and Builders of Spain (APCE), the General Council of the Official Associations of Real Estate Agents (COAPI), the Rental Negotiation Agency (ANA), real estate lawyers , associations and real estate platforms, the acronyms crowd the experts who have not given their opinion on the new Housing Law, which will soon come into force.
On this occasion, the criticism is widespread of a regulation that for the majority means the intervention of the free rental housing market, and burdening the owners, mostly small holders, with impositions to reduce the price tension due to the lack of residential policies, which have not been applied during all these years by any political party.
The Bank of Spain itself , in its 2022 Annual Report of the Bank of Spain , emphasizes that "there is no miracle formula to resolve the imbalances in access to housing." In its report, the BdE assesses the future Law for the Right to Housing . He recognizes its "emphasis on the necessary increase in the supply of rental housing", although he questions some measures, such as rent control, which "could generate undesired effects in the medium term.
"Economic literature has pointed out that, although price controls show the ability to reduce short-term rental prices in regulated areas, this policy can generate adverse effects on rental supply, as well as segmentation in the real estate market" , emphasizes the document.
Among these "adverse" consequences, the supervisory body alludes to the reduction in the number and quality of homes available on the market, changes in the composition of supply and price increases in unregulated segments.
And it recommends avoiding measures that asymmetrically distort price signals, reinforcing the effective legal security of rental homeowners and reducing regulatory uncertainty in this market.
The banking sector, through Ibercaja , also raised its voice against the new law and its CEO, Víctor Iglesias , went so far as to state that the rental problem in Spain "must be tackled" with an increase in the offers of available homes. for this purpose, "more than limiting or limiting the amount of the rent.