Why is it so important to understand this new housing law?
According to the appraiser Tinsa, the increase in the cost of housing in the country is due to growing demand and limited supply, which implies a trend towards an increase in the cost of housing in general, which causes high interannual valuation rates. The 6% year-on-year increase in the average price in Spain compared to the third quarter of 2020, with an average value of €1,444/m2.

According to the European Commission (Eurostat), the cost of housing has increased more than in 2006. That is why, in relation to the global situation and the continent, the new housing law was created. We show you what it consists of.

Regularization of housing costs and rents
According to the new housing law, legal forks, that is, companies that have more than 10 properties in their assets, will have to adjust the rental price based on the reference index for all contracts in areas of stressed market. According to calculations, it is estimated that approximately 150,000 homes will be regularized once the law comes into force.

Increase in property tax up to 150% for empty properties
Each autonomous community will be able to determine the percentage set for these properties, which would produce an incentive to sell empty properties that would increase the demand for available properties and lower the cost of purchasing them. The law would allow the real estate market to be opened up to generate a greater flow of buyers and this would help to reduce, according to experts, real estate speculation.

Youth bonus of 250 euros per home
Young people between the ages of 18 and 35, who want to become independent and whose annual income does not exceed 23,725 euros, will be able to apply for this bonus, which will last for a maximum of two years. It is still early to determine the specific conditions for accessing this bonus, as it is not yet clear whether this bonus can be acquired by young people who share a home, or if there could be more than one person in the home who requests and acquires this economic support from the state

Increase in public housing
In each new housing project, 30% must be reserved for the public housing stock, which will be managed by each local government and may not be sold to private individuals or legal entities. This measure is taken with the aim of controlling property prices and facilitating access to people who cannot afford to rent or buy properties on the free market. Within this 30%, half (15%) will be allocated as social rental housing. The new housing law aims to alienate public administration properties to private individuals.

Tax incentives for natural forks
Individuals will be able to obtain tax credits of up to 90% of the income they obtain in the event of a decrease in the rental price in relation to the previous contract, regardless of the number of properties they own. This measure is taken to incentivize the fluctuation of the real estate market and to expand and protect both the homeowner and the tenant, especially when the latter may be at risk of economic vulnerability.

At Finques Prat, we understand the importance of this new housing law for all sectors and for this reason we have expert professionals to advise housing forks and buyers so that they obtain the greatest benefit and well-being. Request an appointment with one of our advisors to receive personalized information on the purchase and sale of housing.