Draft bill for the right to housing
The future Housing Law, which is currently under development, has, as its main objective, the establishment of a homogeneous regulation of the most essential aspects of housing policies throughout Spanish territory. In this context, many of the dispositions of the new law will have to be implemented by the different autonomous communities in Spain when they deem it appropriate.
The aforementioned future Law, if approved and not modified, will affect (i) construction companies, (ii) real estate companies, (iii) investment funds and (iv) large landlords in the following manner, among others:
- Limits on rental prices in "stressed areas", in this sense, investment funds and large holders that own properties in these areas will see their rental prices capped, according to a "Price Reference Index". Large Holders are defined as owners with more than 10 dwellings or more than 1,500 m2.
- Reservation of 30% in real estate developments for subsidized housing (of this 30%, half for social rental), notwithstanding the fact that this can be avoided as long as the constructor has incentivized affordable housing.
- Tax surcharges: Municipalities will be allowed a surcharge on the Real Estate Tax (IBI) for vacant properties.
- Return of advance payments to the developer: The developer will have to return to the buyer the advance payment made, including taxes and legal interest, if the construction is not started or completed within the agreed terms of the contract. In this sense, there will be a bank guarantee or insurance to protect the down payments to the buyers.
