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The rental market is paralyzed while waiting for the clarification of the new Law on 23-J

Date: September 27, 2023 Time: 23:54:19

For some months now, both real estate agents and those who wish to access a home have denounced the imbalance suffered by the rental market. The Housing Law Approved In May of this year was also added to the marriages of this year, and according to a study, This regulation reinforces the situation in Tual De Falta de Oordta, expelling from the market SOME 100,000 apartments for rent. Experts say that legal uncertainty or price caps in stressed areas have led different owners to choose to sell their apartments or change the rent for another type of housing use such as medium-stay or tourist. However, now the rental market remains in limbo awaiting the general elections on 23-J, as a change of government finally clarifies the new law.

“It is clear that in the market there is a lot of insecurity and mistrust,” says the announcer and director of studios at Fotocasa, María Matos. The expert assures that a few months ago everyone was waiting for the regional and municipal elections, and now they are waiting for the general ones to find out what will finally happen with the housing regulations. “It will depend on who governs the measures that are finally taken. So they are all waiting and in ‘stand by’ mode to find out what kind of movement is best for them, ”she clarifies. In addition, she comments that the rules cannot be changed at once, so “it is normal that the offer has been reduced, especially if we come from a time of buying and selling that has had a lot of performance.”

It should be remembered that the political parties have presented their electoral programs and all have made various proposals related to housing; however, when it comes to the current regulation, all but the PSOE propose changes. PP and Vox seek to repeal this proposal, while Sumar hopes to modify it and add new measures to strengthen access to housing. Faced with this, the agents ask to reach a political consensus that reinforces the current offer that exists in the country: “We have a law that not only does not provoke consensus, but quite the opposite, we need policies where there is understanding and a national housing pact that give stability to the offer and the market, and generate new availability”, comments the director of studies of Pisos.com, Ferrán Font.

Due to all these uncertainties, the owners have questioned whether to continue in the rental market and look to the side looking for solutions that allow them to achieve a clear return or that provide them with security. According to the study ‘Impact of the new Housing Law on the real estate rental offer’ carried out by Tecnocasa and the Pompeu Fabra University of Barcelona, ​​​​he assured that the difference between supply and demand could worsen thanks to the Law, making ‘disappear ‘ up to 11.7% of the current flats on the market. The zones? The document specifies three particular cases that make the owners of rental flats the retirees of the park. In the first place, legal uncertainty, followed by the limit on rents in the stressed areas and finally the updates of the rent below the CPI.

In particular, 66.3% of those surveyed believe that the legal insecurity caused by this law has made them or would opt for alternative options to renting. 22% say that their motivation would be the limit on rents in stressed areas, while 11.8% rent updates below the CPI. Font states that all these paragraphs of the regulations have a negative impact, especially on small owners who represent around 80% of the rental market: “These measures scare them, and it is difficult for them to see where the profitability is. For example, if the index is applied below the CPI, it means that year after year the profitability of your properties will be smaller ”, he assures.

Methods such as the half-stay rental, the sale or the tourist rental are knocking on the door of the owners who seek to avoid the Law

According to the Tecnocasa document, in Madrid 43,113 homes would be removed from the market mainly due to legal uncertainty (70.9%), then the limits to stressed areas (15.7%) and finally due to rent updates below the CPI ( 13.4%). Unlike Barcelona, ​​what worries them the most is the application of stressed areas (63%), followed by insecurity (34.8%) and only 2.2% of the owners are concerned about the new index of prices. In this city, more than 24,000 apartments would be expelled in the coming years. “We see how the current legislation has made a lot of content go to purchase or go to temporary or tourist rentals”, Zanja Font. For his part, Matos thinks that renting a home will continue to be profitable because prices are still high, but he emphasizes that the owner must be given security. “Insecurity brings a lot of concern about defaults, squatters, among others, which generates a climate of mistrust and a climate of mistrust and imbalance,” he says.

Both specialists agree that one of the solutions would generate a political consensus, but that the most important thing is to expand the public housing stock. As they confirm, all this would help to balance the current situation, especially with help and public-private collaboration, with the release of land for construction and streamlining processes. “The Government has to take action on the matter and expand the social and affordable offer, and since it cannot be done overnight, the private rental offer must be increased. Now with the law we will have to wait for the elections, but in the meantime other types of measures can be taken to help housing”, says the Fotocasa spokesperson.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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