More Changes in Housing

Real estate
WRITTEN BY Xavier Llopart i Duarte
05 Jun, 2023 — 6 min
More Changes in Housing

Housing is an extremely complex problem, in which everyone participates to some extent and viewpoints vary widely.

All the factors involve clash and interact with each other, such as the labor market, land ownership, construction costs, urban planning, the effectiveness of justice... and there are no magic solutions to solve all these issues.

Legislating hastily, with a focus solely on immediate and promotional interests, leads us to the approval of poorly made laws with an expiration date. The next political party will again use communication strategies and adjust the laws according to the circumstances of the moment.

The result is legal uncertainty for everyone and a scenario that changes but does not improve.

I believe it is necessary to bring stability and security to the rental market, with longer-term contracts, more constant rent updates, and above all, providing more resources to justice. Tenants need stability so that renting can be a real alternative to home ownership, both in duration and in rent. The new law points a bit in this direction, but not much.

At the same time, property owners require that any potential conflict in housing to be resolved swiftly and securely for all parties involved. Providing trust in the process is not a problem if the conflict resolution system has sufficient resources and operates efficiently.

Regarding the division made with large holders, I believe it will not be beneficial in areas like Igualada. Putting someone who has 5 rental properties in the same category as someone with an international investment fund with thousands of homes is not coherent.

Local small investors play a very important role in urban regeneration, intervening in both individual flats and entire buildings. Due to their structure, they are also very susceptible to legislative instability, and uncertainty will surely halt or delay projects.

Finally, and for me, the most relevant point of all, is that the Administration must significantly increase the public housing stock in the rental regime. It must play a fundamental role and cannot rely exclusively on the private sector. This must be a persistent and long-term oriented goal, completely contrary to the current trend.

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