The Spanish rental market has been in the eye of the storm for months subject to approval of the new Housing Law. After lengthy negotiations, Pedro Sánchez’s Executive has at present the necessary support for its implementation.
Vicenç Hernández Reche, Tecnotramit’s CEO, analysed the new regulation and stresses that ‘despite this law aiming to improve decent housing access to all, proposals have been carried out behind the sector’s back and expert’s opinions and suggestions have been omitted.’‘When legislation excludes sector knowledge and decisions are taken according to electoral timetables, ideology is prioritised over common sense and, as a consequence, a Housing Law based on populism,’ the expert regrets.
‘The implementation of said law places us before a dangerous interventionist scenario that could bring serious long-term consequences beyond the lack or scarce changes in rising rental prices.’ The economist warns: ‘If promised results are not reached, the Government will blame third parties to keep moving forward even more aggressive interventionist policies.’
As Tecnotramit’s CEO warns, this could force owners to rent to whomever and under the conditions the State forces, which directly violates against private property and free market. Thus resulting in a more controlled and dependant society on the State alongside the consequences this implies on the property market and overall economy.
Ultimately, Hernández Reche stresses the new Spanish Government legislation ‘is yet another example of how ideology imposes upon reason and empirical evidence.’‘Far from solving issues when accessing decent housing, this is a political action that worsens and transforms them into an even greater economic and social burden. The reality is this market needs long-term solutions and effective policies to help create affordable and sustainable residential rentals beyond the circumstantial issue that meant rising inflation,’ he concludes.