The Real Estate Agents (API) of the Girona counties criticize that the new law to regulate the price of rentals “not the solution”. They ensure that the focus of the problem is “supply shortage” and lament that the “responsibility to respond” is shifting to the private sector. For APIs, what is needed is for the administration to resolve the current imbalance by expanding the public rental housing stock, and not “intervening” in prices. In addition, they argue that fixing a roof for rents, in the long run, will be worse. Because small landlords who now own a rented property will decide to put it up for sale or opt for other alternatives, and this will lead to even more “housing shortages”.
The APIs believe the government has had a “lack of strategic vision” and stress that by limiting prices, what is being done is to shift “responsibility” to the private sector. “We have been warning the Administration about the lack of social housing, and it is she who must provide a public park of rental housing to resolve this imbalance that makes, by the law of supply and demand, they end up raising prices, ”the APIs say.
“If we really want to promote access to housing for the most vulnerable sectors, it cannot be done by intervening in the price of rent,” says the president of the Girona API school, Joan Company. “We need to address the lack of supply with bold measures, as this is the cause responsible for the price increase,” he adds.
In the long run, even fewer flats
According to the Girona APIs, putting a roof over rents may seem like an “effective” measure in the short term; but in the long run, it can end up turning against you. “If we add the increase in the duration of contracts with the price limitation, the imbalance is served,” the real estate agents say.
The college recalls that there are many small landlords who use rent to “supplement their income or retirement.” Limiting prices, the APIs say, will have a “direct impact on their home economy,” and will cause them to decide to withdraw homes from the rental market and put them up for sale, generating “even more housing shortages.”
“Without any doubt, then, the measure will cause the rental housing stock to shrink and deteriorate,” say the Girona APIs. On the one hand, because the CPI update is “clearly insufficient” to keep housing “in optimal condition.” And on the other hand, because the “low profitability” will cause a leak of these apartments to the buying and selling market.
For single reading
The Parliament approved yesterday to process by single reading the proposal of law of urgent measures in matter of containment of rents in the agreements of lease of house. JxCat, ERC, CatECP and the CUP voted in favor, while Cs, PSC and PPC voted against.
The initiative aims to regulate the “containment” and “moderation” of rents when they are earmarked for permanent residence and are in areas declared to have a “tense housing market”. The bill advocates setting a reference price based on an index and that it can be increased by 5% if households accredit “specific characteristics”. Groups that voted against the single reading warned about the unconstitutionality of the bill.