Following the announcement of the agreement between the two partners in the Spanish governing coalition to approve the new Housing Law, reactions from the real estate sector were swift. The new regulations, which are still being negotiated, must first pass through the Council of Ministers and then through the Congress of Deputies.
The new regulation focuses on four points: penalising empty housing with a 150% surcharge on IBI by local councils; the obligation to reserve 30% of new developments for subsidised housing; freezing rents for owners and offering tax incentives for lowering them; and creating a requirement for large owners (more than ten homes) to lower rents. Each Autonomous Region could request the last measure if the market is under pressure.
Furthermore, there will be an additional package within the General State Budget, including a 250-euro cheque per month for young people earning less than 23,725 euros. There will also be rental subsidies of up to 40% for families in economic difficulty.