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This Tuesday, February 1, the Government will give the green light in the Minister council to housing law which, for the first time, will include the price control in the most stressed areas. To tell the truth, the approval comes a month later than expected by the Minister of Transport, Mobility and Urban Agenda, Rachel Sanchez, but the delays are explained by the critical report issued by the General Council of the Judiciary (CGPJ), considering that housing “is a matter of regional ownership.” After knowing the document, Sánchez insisted that the Government “does not invade regional powers” with the future regulations.

And not only that. The delays of the CGPJ and the consequent postponements of the return of the draft to the Council of Ministers led United We Can to question the commitment of the PSOE with the Housing Law. In fact, the Minister for Social Rights and the 2030 Agenda, Ione Belarra, launched last week a round of contacts with social groups to make a common front and defend the “most ambitious” aspects of the future Housing Law, fearing that he PSOE backed down.

For their part, sources from the Executive pointed out that the fear of the purple formation was not justified. Let us remember, then, that the coalition government saved with the agreement of the Housing Law the last hurdle for United We Can to give the go-ahead to the General State Budgets (PGE) for 2022. Hence, the UP’s insistence that be approved as soon as possible in the Council of Ministers

Housing rental in stressed areas

One of the most controversial points of the new Housing Law is the rental price regulation that, since it was announced, has caused rejection in the real estate. The new rule will limit the price of rented homes in the more stressed areas.

The stressed areas are those regions that in recent years have experienced a sustained increase in rents, which has meant that households have a financial burden. At the moment, and unless they announce new scales this Tuesday, this is the name given to those areas in which the median rental expense exceeds 30% of area median income.

The most important thing to keep in mind at this point is that the declaration of the stressed areas will correspond to the autonomous communities. Hence, the minister of the branch certified that the new Law “does not invade regional powers.”

tax credits

That’s the way it is, in stressed areas in which the landlords lower the rent by 5% compared to the previous contract, the bonus will rise to 90%. The deduction will be 70% if it is rented for the first time to young people between 18 and 35 years of age in these stressed areas. If rehabilitation or improvement works have been carried out on the property, the bonus will be 60%.

Which landlords will be able to raise the rent

Likewise, the owners who sign a contract of at least 10 years will be able to get rid of the price freeze in the stressed areas and may increase the rent by up to 10% in exchange for extending the duration of the contract.

In addition, in these areas the tenant will be able to extend his contract three more years than is currently contemplated, maintaining the same conditions, thus ensuring that income alone rises with the CPI over a longer period. Of course, there will be a moratorium of 18 months from the approval of the law until the reference index of prices in the stressed areas governs.

Incentivized affordable housing

On the other hand, the law will permanently protect the public stock of social housing, that cannot be alienated. Furthermore, it introduces the concept of privately owned incentivized affordable housing, which will grant tax or other benefits for owners who offer rent at reduced prices.

Tax on empty homes

To mobilize housing and avoid empty flats, the draft establishes surcharges of 150% to the IBI in the liquid quota. In this way, the range of 50% currently allowed up to that 150% is opened. This maximum surcharge will apply to dwellings unoccupied for more than two years and to owners of a minimum of four dwellings in the same municipality.

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