It’s 2020, and Spain’s new coalition government led by PSOE & Podemos (We Can) are contemplating putting into effect “bilateral” agreements in the cities with “tense” rental market situations, which will allow them to better address the need for housing, as well as holding both sides in the bilateral agreement accountable for the conditions of the rental agreements.
This appears in the proposed document that both parties have signed, under the title of “Progressive Coalition: A New Agreement for Spain”, in which they also commit themselves to promote regulatory reforms that allow the communities of owners to prohibit touristic rentals or to remedy certain clauses and conditions common to Spanish rental agreements.
Both parties are also committed to establishing a legal framework that defines the concept of “empty housing” as well as “a large property owner”. They have also committed to making various tools for detection of these cases to Spain’s Comunidades Autonomas (provinces).
At the same time, a specific policy will be defined in this area, which will make it possible to establish appropriate measures in the various cases (such uninhabitability, large property owners, insecurity or instability of rent, etc.): these include fiscal tools, sanctions, insurance or incentives to mobilize empty housing, in a framework where the large holders of housing collaborate with the government to make their unoccupied properties available for public to rent.
Sareb and Social Rentals
To the same end, the coalition government will draw up a Sareb (Company for the Management of Assets proceeding from Restructuring of the Banking System) action plan to guarantee the signing of agreements with Autonomous Communities and town councils that will promote the use of housing for social rentals.
With regard to public housing, they are committed to drawing up regulations that guarantee that it is “only” to be used for renting by vulnerable people, “preventing it from being sold or exploited”, while at the same time acquiring and adapting public land for social or affordable rental housing, with financial instruments through the ICO (the Official Institute of Credit) and the EIB (European Investment Bank) for the promotion of rental housing.
Together with the bilateral agreement in the cities with the highest rental prices, PSOE & Podemos will redesign the State Housing Plan for 2018-2021 to promote affordable rent and rehabilitation, in coordination with the autonomous communities.
Due to this, available public land will be mobilized and financing will be provided so that the Autonomous Communities can exercise their preemptive rights in the transfer of acquired housing, and measures will be taken to speed up the procedures for the granting of relevant licenses.
Protection of Mortgage Holders
The Government’s housing programme also provides measures to protect mortgage holders, such as improving the transparency of the terms and conditions of contracts and their economic and legal implications, while the foreclosure procedure must guarantee all means of defence and evidence for the protection of the mortgage holder, in accordance with the
European Union regulations.
Likewise, mechanisms for the restructuring of mortgage debts will be reenforced on the habitual residence of bona fide debtors in a situation of vulnerability, and coordination between judicial bodies and social services will be strengthened in the event of foreclosure to avoid situations of homelessness and residential exclusion.
If this news has left you with questions regarding the situation of your property or rental agreement in Mallorca, Menorca or Ibiza then please contact us at your convenience at email@example.com or by phone on the numbers listed on our contact page.