The small letter of the Law of Housing that has divided the Government: limited scope and without limit to prices before the next elections

The Housing Law emphasizes its way to the Congress of the Members with one year of delay as expected and with more doubts than certainty about its true intentio

The small letter of the Law of Housing that has divided the Government: limited scope and without limit to prices before the next elections

The Housing Law emphasizes its way to the Congress of the Members with one year of delay as expected and with more doubts than certainty about its true intention and its true effectiveness. On paper, the Government intends to "leave behind real estate bubbles, speculation and urban ballots", but in practice, the Law of Housing that includes limiting the rise in rentals of rentals is born without the tool to limit the rise of the prices of rentals; It will have a maximum range of 150,000 homes (over a total park that exceeds 3.5 million homes for rent) and will only apply if the Autonomous Communities and the City Councils want to apply them in their territories.

That is, in practice, the norm was born with a very limited scope, but the future housing law has become a political issue that has always depended on the stability of the legislature and that has conditioned all the negotiation and its final score. The limitation of prices and the intervention in rentals was always an immovable requirement of United can we maintain the Alliance and PSOE has tried to maintain the balance between that requirement and market criticisms.

This explains that the reference index of the prices it requested to limit the increases of large holders can not be applied even if the law can overcome the parliamentary process and can not be applied because the index will not be ready up to 18 months after the Entry into force of the Law (scheduled for the third quarter of 2022 if it manages to overcome the entire parliamentary procedure).

The PSOE itself was not a supporter of direct control of prices, but the government's survival depended on assigning at this point. Delaying the update of the price index, the PSOE gets an intermediate way that does not please almost anyone, but allows you to exhaust the legislature. Or at least, that housing is not one of the risks of breaking the alliance.

The index in question was created in July 2020, when José Luis Ábalos was still at the forefront of the Ministry of Transport. It was supposed to be one of the key tools to limit the rise of the leases agreed upon, however, the system was already ecceed because it is elaborated with prices of 2018, coinciding full with the boom of leases, and did not reflect or It reflects the current market situation.

Now the executive is given a deadline to update it from 18 months from the entry into force of the law, which means that the measure would not apply until the next legislature. "The price can not be limited until the reference index is approved," supports from the Ministry of Transport. The rest of the content of the Law will enter into force once the standard is approved and published, with the exception of fiscal measures, which will do so as of January 1 of the year by administrative reasons, as adding the same sources.

However, not even that guarantees the effective scope of the law since the greatest restrictions fall on the large holders and these possess only 150,000 homes in a park that exceeds 3.5 million properties for rent. The own responsible for the wording of the standard admit that the impact on this sense "is relative", although they trust that the bonuses established for private owners encourage pricing reduction in the coming years.

In this sense, the Government aims to encourage fiscally the rental of the housing housing affordably with deductions that will range from 50% to 90% in the income tax of natural persons (IRPF).

In the tensioned areas in which the landlord drops 5% the income with respect to the previous contract, the bonus will amount to 90%; If youth is rented for the first time from 18 to 35 years in those tensioned areas, the deduction will be 70% and if rehabilitation or improvement works have been carried out, the bonus will be 60%.

Likewise, the owners who sign a contract of at least 10 years will be able to get rid of the freezing of prices in tensioned areas and can increase the rent up to 10% in exchange for expanding the duration of the contract. In addition, in this areas the tenant may extend its contract three years more than it is currently contemplated, maintaining the same conditions, with which they ensure that the single rent rises with the CPI for a broader period.

However, the application of all the above is subject to the autonomous communities and the municipalities, who are those who hold the majority of the housing powers, decide to declare an area as a tensioned area of prices. Otherwise, the market will continue to function as well and a part of the norm will remain on wet paper.

This has earned the criticisms of figures as the tenant union, which considers that the law is insufficient and "does not solve the rental problems, nor the evictions," or the real estate sector, where they believe that the norm imposes a "legal discrimination and a violation of rights "towards those owners who have ten or more properties for rent, according to Asval, the Association of Homeowners for rent.

Although the criticism has questioned the future housing law come from the General Council of the Judiciary (CGPJ), which approved a preceptive report, not binding, very critical, with the preliminary draft of the Executive while considering that housing "is a Subject of autonomic ownership ".

The Government admits having made some "formal, not fund" changes following the report, but it has endeavored in the last days by subtracting weight. "It is not a directive of the judges, but of a judicial body, we are clear that our text complies with the constitutional mandate and the division of autonomic competences. We have clarified in the law some issues from the point of view of normative quality for That the competence distinction of the CCAA is clearer, but they are formal aspects, not fund, "indicate sources from the Executive.

Date Of Update: 01 February 2022, 21:35

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