Congress approves the housing law that caps rent increases in the middle of the pre-campaign

In the early morning of October 25, 2020, within the coalition government, the first Budgets of the PSOE-Unidas Podemos alliance were negotiated. A few hours after the Socialists wanted to approve the budget project in the Council of Ministers, the purples stood up. That night, Pedro Sanchez and Pablo IglesiasHand in hand, they unraveled the negotiation with the commitment to promote a housing law. 913 days then the Congress of Deputies, in a tight vote, has approved the first regulation of housing in the history of Spain that will limit the price of rentals.

PSOE and United We Can, with the support of ERC, EH Bildu, Más País and Compromís -176 votes in favor- have managed to carry out one of the star laws of the legislature and which, without a doubt, is among the five regulations that have caused the most headaches brought to the government. After almost a year and a half of negotiations within the Executive and practically the same time in the Lower House, the law takes one of its last steps at the doors of the regional and local elections of 28-M. This argument, that of “electoralism”, has been used by various formations, including PP, Vox, Cs and other minority groups to vote against. They have also opposed, although alleging invasion of regional powers, PNV, Junts and PDECat. In total, 167 ‘no’. There has only been one abstention, that of BNG.

PSOE and Unidas Podemos carry out the norm with the support of ERC, EH Bildu, Más País and Compromís

However, the agreement that the coalition government closed with the Catalan republicans and the Aberzale formation two weeks ago has given the rule a free hand. In addition, its approval coincides with the continuous announcements by the head of the Executive, Pedro Sánchez, about the creation of a total of 113,000 public homes in the coming years. “With this housing law, with the levers that are recognized by law and with all the impetus that we are going to give to the promotion of public housing, I believe that we are going to be able to change the paradigm and convert what today is a luxury good into a good of first necessity”, has sentenced the head of the Executive after approving the norm.

The authorship of the norm

The two formations of the Government have tried to claim the norm as their own. Both the Minister of Transport, raquel sanchezas the person in charge of Social Rights, Ione Belarra, main negotiators of the law, have applauded the achievement that is achieved this Thursday. “It is a law of hope for young people” that makes housing “the fifth pillar of the welfare state“, the socialist leader has asserted. In addition, she has stressed that it is a legislative text “legally solid“, which “respects the framework of the powers of the autonomous communities” and that “does not go against anyone”.

The general secretary of Podemos does not see it in the same way. “Today the bank loses, the vultures, the investment funds and the people win, the tenants who have a mortgage. They have been years of very hard work, but let no one be mistaken, nothing ends today”, Belarra has sentenced from the rostrum of Congress. The minister, who inherited the negotiation from Iglesias, has indicated that the conversations with the socialists has been “very difficult”due to “many interests at stake” and that, therefore, they will be “vigilant” to ensure that it is strictly complied with. In addition, in a veiled way, he has criticized Sánchez’s announcements on housing construction: “The fundamental thing is not only to build, but to make private developers comply and take responsibility. That is the true progress of this law.”

The negotiators of CKD and bildu They have also defended the norm. The Catalan republican deputy Pilar Vallugera He has claimed that “the bill was unpresentable”, but that during a tug of war that has lasted more than 400 days they have managed to modify all the articles, except for one. For his part, the Aberzale spokesman, Oskar Matutehas admitted that “it is a short step” for what they would have wanted, but “a necessary step” and in the face of criticism from some nationalist formations, has said that “respect for powers is guaranteed” and that “it is not a centralizing text , but enabling”.

The keys to the norm

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The regulation eliminates the CPI as a reference index for updating income, setting a maximum of 2% for this yearof the 3% by 2024 and from 2025 will be created a new index to which these increases must be adjusted. In addition, it leaves the declaration of stressed areas in the hands of the autonomous communities, where small holders they won’t be able to raise the prices when making new contracts (with exceptions) and those with 10 or more properties must adjust rents to an index created by the Ministry of Transport.

On the other hand, the norm includes that the real estate management expenses and those for formalizing the contract will always be the responsibility of the lessor. It also incorporates measures of protection against evictions, prohibiting releases without a predetermined date and time and including new extensions in eviction procedures. In addition, it will force you to reserve 40% of new promotions from housing to social housing. However, tourist rentals remain unregulated, as United Podemos and other formations have claimed, after the PSOE refused because they are regional powers.

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