Spanish government commits to controlling rental prices

Spain will regulate rental prices in areas where the demand for homes outstrips those on offer, Treasury Ministry Maria Jesus Montero said on Tuesday, the latest twist in a drawn-out internal spat between coalition partners Unidas Podemos and the Socialists.

Reuters | Madrid | Updated: 23-02-2021 23:39 IST | Created: 23-02-2021 23:39 IST
Spanish government commits to controlling rental prices

Spain will regulate rental prices in areas where the demand for homes outstrips those on offer, Treasury Ministry Maria Jesus Montero said on Tuesday, the latest twist in a drawn-out internal spat between coalition partners Unidas Podemos and the Socialists. "The regulatory package contemplates different parts (of the real estate market) which have to be regulated, among which is the fight against exploitative rental prices," Montero told reporters on Tuesday.

Spain's leftwing coalition government made affordable housing a policy priority, although the economic crisis wrought by the coronavirus pandemic has complicated its ambitions. The hard-left Podemos advocates price caps without exceptions. With social housing representing less than 2% of all homes according to the OECD, Spain lags far behind European peers such as Britain, France or Italy, where subsidised housing represents 17%, 14% and 4%, respectively, of each country's stock of homes.

"The debate centres around which instrument will best allow us to provide judicial security and respect citizen's rights, both the right to housing as a social function, and the right to private property," Montero added. But landlord associations across the country have decried the move, saying the climate of legal uncertainty is deterring potential investors and individual landlords from renting their properties, reducing rental stock as a result.

"We think it's more effective to promote than to impose, and are working on several means of getting more homes onto the market at accessible prices... like tax incentives," Transport Minister Jose Luis Abalos declared on Monday in an apparent attempt to appease concerns about direct caps on rental prices.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Addressing conflict-related sexual violence at long last

... ...

Why unequal access to coronavirus vaccines is a threat to us all

... ...

India’s love affair with fossil fuels: the path to sustainable development?

... ...

Videos

Latest News

S.Korea roiled by property scandal amid soaring house prices

Accusations that officials at South Koreas state housing corporation tried to use insider information to cash in on runaway property prices has thrown new fuel on an issue that is draining support from the ruling party ahead of key election...

Chef Kunal Kapur pens new book

Chef Kunal Kapur has written a new book which he says is not only a nostalgia trip for a boy from a big Punjabi family, but is also all about the experience of sharing a meal together with loved ones.Kunal Kapur In The Kitchen, published by...

Temporary govt employees cannot be regularised: Kerala HC

The service of temporary government employees or those working in any institution with deep and pervasive state control cannot be regularised, the Kerala High Court has ruled. A division bench justices A K Jayasankaran Nambiar and Gopinath ...

Russia's RDIF signs agreement to produce Sputnik V vaccine in Italy - chamber of commerce

Russias RDIF sovereign wealth fund has signed an agreement with Swiss-based pharmaceutical company Adienne to produce the Sputnik V vaccine against COVID-19 in Italy, the Italian-Russian chamber of commerce said in a statement.The chamber s...

Give Feedback