Today - exactly one year since the Catalan law entry into force, limiting rental housing prices in the so-called “stressful” areas. The reality is that the result is far from the goal the Generalitat pursued in taking this measure.
According to sector experts, due to this interference in the market, there has been a sharp decline by 40% in the number of apartments offered. It is the opinion of the Spanish Association of Private Property Buyers (Aepsi), noting that “the restrictions of the rent law forced many owners to sell their houses, because, in their opinion, they were able to make more profit than by renting out”. “For this reason, there has been a decrease in supply, which, as a result, has affected demand,” says Aepsi President Iñaki Unsain.
To prevent homeowners from refusing to rent out their house, Aepsi offers a variety of measures. The first is the introduction of rent income tax incentives for both homeowners and renters. Second: various projects for the development of affordable housing through public and private agreements.
Another consequence of this decree, which affects rental housing in Barcelona and 60 other municipalities of Catalonia, is that “the number of contracts concluded has decreased markedly, which means that the market in these areas is in an even greater state of stress. And high demand remains against the background of an even more meagre offer,” explains José Ramón Zurdo, CEO of the Agency for Negotiating Leases (ANA).
In particular, the official data offered by the Human Rights Agency of Catalonia indicate a decrease in the number of signed agreements by 16.6%.
“Now the intervention areas in Catalonia are, shall we say, privileged areas for the few. Many are waiting for an apartment, and meanwhile, the offers are getting smaller and smaller,” Zurdo informs. Thus, the director believes that it is essential to take care of the proposal and work on it to stimulate broader and better access to rent.
“The law restricting prices in Catalonia, and its possible transition to the Public Housing Law, which is under pressure from United Podemos, is becoming a problem for owners, individuals and companies, and is detrimental to private and institutional ones,” Zurdo notes. He also concludes that “Catalonia is a mirror where we can look to understand what will happen if this law is transferred to the whole of Spain.”