He Institute of Economic Studies (IEE) criticizes the overregulation in the rental market. The study center of the Spanish Confederation of Business Organizations (CEOE), in its latest report ‘Public-private collaboration and the challenge of housing’, points out that, in recent years, they have implemented measures regarding housing regulation“which have represented a violation of property rights and a burden to achieve a true improvement in access to housing, in particular, for the most vulnerable families due to their socioeconomic situation.
The two measures that Íñigo Fernández de Mesa, president of the IEE and vice president of the CEOE, have criticized have been the price controls and the eviction moratoriumsboth included in the Housing Law approved in May in the Congress of Deputies. “These measures cause the withdrawal of housing from the rental market, which directly impacts the most vulnerable sections of the population. Rent control is inefficient and counterproductive because it reduces the amount of supply and increases prices. Although the Housing Law is well-intentioned, is harmful for the lower classes who want to access rent,” he noted during the presentation of the study.
Government’s “tremendously ambitious” objectives
The IEE has positively valued the objective of the Executive to lift during the current legislature 184,000 homes intended for rent at affordable prices. However, it has described as “tremendously ambitious”. “This is an ambitious objective because around 100,000 homes are built annually on a free basis. Building 184,000 properties in four years means developing 46,000 social apartments a year. It would be practically half of the homes that are currently being built,” explained Íñigo Fernández of Table.
From the study center of the CEOE believe that, with the current situation of public deficit and scarcity of resources, the different public administrations They must implement public-private collaboration measures to develop housing policy. A measure that they have highlighted, which is already being developed by several communities or city councils, including Sareb, is the promotion of affordable rental housing and its subsequent exploitation by private companies on public land.
The report also invites the use of the residential park already built. “The large funds have contributed and contribute to the professionalization of the rental market. They must be counted on and not punished. There is an opportunity to use the current housing stock, which is high, so that by collaborating, affordable rental housing can be developed. A public endorsement could be made of the Treasure or the ICO that guarantees the collection of rent in exchange for the rental price being affordable. When the landlord is assured that he will receive rent from him, he is willing to rent much cheaper. We must reduce the risk for the owner of renting, which will translate into the number of homes that are put on the market and, therefore, the rental price is reduced,” concluded the president of the Institute of Economic Studies.