Housing Law in Spain.

HISTORY AND DATA.

Housing continues to be today a basic necessity only available to less and less privileged people.

Spain is a country in which the construction sector has been crucial in boosting the engine of its economy. A sector that suffered, along with other countries, a historic real estate bubble during the early years of the 2000s that led to the largest global financial crisis in the last 70 years.

We know that the percentage of dwellings belonging to housing rental companies represents less than 5% of the total free housing stock in Spain.

The point is that it is well known that housing is a fundamental right. This is stated in our supreme rule, the Spanish constitution of 77 in its article 47, which establishes:

“All Spaniards have the right to enjoy decent and adequate housing. The public authorities will promote the necessary conditions and establish the pertinent norms to make this right effective, regulating the use of the land in accordance with the general interest to prevent speculation. "

It is also included in resolution 43/14 of the mandate of the United Nations Special Rapporteur on housing and numerous international conventions; and it is evident that common sense also tells us that housing is always a fundamental right and a basic necessity and that for this reason, the authorities must act to provide access to it for all.

SUPPORTERS AND DETRACTORS OD THE NORM.

Now, we ask ourselves, which is more important or prevails more over the other constitutional article, the fundamental right to housing or the freedom of the market?

Ask yourself that question ...

Currently in Spain, leftist forces are preparing a draft law, which addresses precisely the entire problem of access to housing.
They have followed the example of neighboring countries to find the best solution.
This draft law has also included a procedure called Public Consultation so that all citizens, organizations and associations contribute their bit to design an optimal solution.

The new housing law aims to:

1. Regulation of housing policies as a public service of general interest.
2. Shielding of the social function of housing.
3. Promote the development of public stable housing parks.
4. Strengthening the right to decent housing at an affordable price.
5. Strengthening of planning and inter-administrative cooperation on the matter.
6. Transparency, security and information as a guarantee of the right to housing.

SOCIAL TENSIONS.

We know that there are "stressed" urban areas, that is, areas where the price of housing for rent has suffered increases that make it impossible to access unless you opt for the formula of sharing it.

There are many reasons that justify this increase in the rental price:

- Business centers located in cities that attract most of the workforce and therefore the demand for it, which increases prices.
Not only urban areas but also coastal and island areas.
- The generalized fall in the available supply of private housing, given that in the face of the problem of breaches of contract by tenants (defaults, destruction ...) the owners suffer the helplessness of a slow justice that often delays and does not lead to no economic compensation and yes to many economic and psychological damages.
- The number of social housing available to the most vulnerable families. And what are social housing and how many do we have? It is a good question that the authorities should clarify.
- The situation of the economy (unemployment, precariousness, access to credit ...)
- The social shield: direct aid to citizens with more modest incomes.

MAIN OBJECTIVE.

This Law aims to facilitate a solution to a social demand for affordable housing, especially for the youngest and workers and penalizing above all those who have their homes empty through the discretionary increase on the part of the municipalities, of the ibi receipt by up to 100 % of the ordinary amount.

It is a state regulatory framework, but it may be applied at the discretion of the communities, since these powers are assigned to them.

The problem arises when precisely, due to this derivation of competences, the same norm may be applied according to the political sign of each community.
It is clear that each community will have more or less stressed areas and that it is common sense that the application of this rule will vary depending on its own circumstances and electoral interests ...

We cannot delve further into the content of the same norm since the law has not yet been approved, but we can anticipate that there will be tax incentives for owners who formalize ten-year contracts and who comply with the contracts of the Law of urban leases.

Gabriel Diaz Garcia
Associate Economist Alicante 3611
European Financial Advisor