The Generalitat announced this Monday that it has begun "the preparatory action" to define the areas of Catalonia in which the housing market is stressed in order to be able to apply rent ceilings again, as established by the Housing Law that came into force on last May 26, two days before the elections. The development of the law, however, is now in the air awaiting the result of the general elections on July 23, since it is the central Administration that has to approve the income index and the areas in which they can be applied caps, and because the PP has announced its intention to repeal the rule if it reaches the government.
As explained by the Generalitat, the Government has also sent a letter to the Ministry of Transport, Mobility and Urban Agenda in which it requests that it standardize the rental reference index that it applied in Catalonia in 2020. The Housing law, however, It is expected that the INE will prepare a reference index for this, which must be published before December 2024.
This Monday, directors of the Don Piso real estate agency joined the criticism of the Housing law. Emiliano Bermúdez, deputy director general of the company, assured that “the hasty and interested approval of the Housing Law has not fulfilled its political objective. Unfortunately, it is having a negative effect on the market from the outset due to the instability and lack of security that it transmits to all the parties involved, from owners to tenants, including construction companies, banks and real estate agencies”.
The announcement of the granting of guarantees for 20% of the mortgage for the purchase of the first residence for young people and families with children is also affecting some purchasing decisions. Bermúdez assured, however, that in most cases it will not be possible to access a mortgage either. “The problem for young people is not only to gather enough cash to pay a down payment, but to meet the necessary requirements for an entity to give them a mortgage. Job insecurity, the type of contract and low income are the real underlying problem, ”he assured.
The manager pointed out that the rule reduces international investment. “With the current legal uncertainty, the foreign investor will choose to go to countries where the Golden Visa is still valid, such as Italy or Greece. Meanwhile, there is going to be a drop in build to rent, since no financial plan from a private initiative can bear the consequences of this state interventionism”.
