Regularize vulnerable squatters and start from scratch

Eduard Mendiluce, CEO of Anticipa and Aliseda Real Estate, two of the real estate companies of the Blackstone group in Spain, yesterday proposed "doing a reset" to stop the rise in occupations in Spain, with the regularization of vulnerable illegal occupants and of good faith, within the framework of a collaboration agreement between the public and private sectors.

Thomas Osborne
Thomas Osborne
20 October 2022 Thursday 16:42
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Regularize vulnerable squatters and start from scratch

Eduard Mendiluce, CEO of Anticipa and Aliseda Real Estate, two of the real estate companies of the Blackstone group in Spain, yesterday proposed "doing a reset" to stop the rise in occupations in Spain, with the regularization of vulnerable illegal occupants and of good faith, within the framework of a collaboration agreement between the public and private sectors. Simultaneously, in his opinion, the Penal Code would have to be toughened to be effective and stop new occupations.

In his speech at The District congress, the executive pointed out that the Spanish situation is unparalleled in Europe, with 60,000 illegally occupied homes, and even more so in Catalonia, which accounts for 70% of the cases. With the permissiveness in the face of the occupation, in his opinion, "the Executive is transferring the cost of housing vulnerable families to the private sector."

The director considered "cynical" the change in the Criminal Procedure Law that the PSOE has proposed in Congress, which provides for evictions of squatters in 48 hours but conditions them on families receiving a flat from social services, "who do not have not a single empty floor that they can offer”. In his opinion, the proposals of parties such as the PP or the PdeCat would be more effective, because they do not include this condition, and could be complemented with aid for the affected families or job placement programs.

Mendiluce framed this "turning the page" in the proposal that Asval, the employer's association of large owners, has presented to the Government, which proposes that the funds provide the Executive with a bag of 30,000 homes in stressed areas, with a rental for 25 years with a discount of 20% with respect to the value of the area, which would have to be paid by the Government.

“Dublin successfully implemented it. And it would be a first step to face the housing emergency, although not the problem of access to housing in Spain, which is much broader”, acknowledged Mendiluce. The employers estimate that the measure would cost the Government 75 million annually and the houses could be managed by the municipalities or the autonomous communities.

Iheb Nafaa, CEO of ServiHabitat, the servicer controlled by the Lone Star fund, also pointed out the funds' discomfort with the new Housing Law promoted by the Executive. “It would be necessary for there to be a minimum consensus in Spain, between all the parties, that would give continuity and stability to the regulation, which is something that our investors need”.

Nafaa pointed out that one of the most controversial points of the law, the establishment of maximum rent ceilings, "produces the opposite effect to that which is intended, because it reduces supply, as has been seen in Barcelona and in other European cities in which has been applied”. For Mendiluce, in addition, establishing a cap on rents paradoxically raises them because all owners want to be at the maximum values.