It is a complement to the bonuses that, “limited in time, could intervene in the market to cushion” the pressure in stressed areas

The Minister of Transport, Jos Luis Balos.

The negotiations to save the future Housing Law take a new twist of the script. The Ministry of Transport, Mobility and Urban Agenda has presented this Wednesday a new proposal to United We Can in which it proposes to establish an “additional” mechanism to the bonus system for owners who, “exceptionally and limited in time, it could intervene in the market to cushion “price pressure in stressed areas.

This is a further step in the freezing of prices in stressed areas, which was already recognized a few weeks ago by the department led by Jos Luis Balos and that it seeks to bring positions closer to its government partner to save the future Housing Law almost five months after the date that both set as a goal to close an agreement.

The mechanism contemplates granting the competent administrations the time necessary to be able to compensate, where appropriate, the shortfall in supply or correct the deficiencies in these stressed areas with other housing policies and must include, among other things, that the responsibility in guaranteeing the right constitutional access to housing corresponds to the public powers; technical soundness and legal security for its permanence in time; avoid a drastic reduction in supply and take into account “that the price indices published by the Ministry and by other administrations that have implemented them have proven ineffective for the objective that is intended to be achieved”, according to the document to which it has been access THE WORLD.

Sources from the Ministry of Transport, Mobility and Urban Agenda assure that this proposal complies “scrupulously” with the signed agreements and that its main objective is to “end abusive increases, contain rents and achieve lower rents.” However, United We can insist that it is not enough since in the government pact both commit to regulate prices so that communities can freeze and lower prices in stressed areas.

The misgivings of Podemos

They believe, in fact, that the proposal does not include anything new because the price reductions are due to the tax incentives that would be granted to the owners and not to the direct regulation of rents, which continues to be their requirement from the outset.

The PSOE for its part considers that the document proposes a comprehensive plan that takes into account the situation of both owners and tenants and that is complemented by tax incentives at a general level and specific measures in areas of greater tension.

In these areas, the Socialists propose that the tenant can take advantage of the termination of the contract to an extraordinary extension, of an annual nature, and for a maximum period of three years, under the same terms and conditions of the contract in force.

“Additionally, in the case of new tenant change contracts in an area declared as a stressed residential market, the increase in rental income is limited to 10% on the last rent of the previous contract, “he adds.

The PSOE trusts that the simultaneous application of this mechanism, together with the fiscal stimuli, will achieve the double effect of short-term income containment during the duration of the declaration of stressed area, together with the medium-term stimulus favoring new contracts with Favorable conditions for profiles with difficulties in accessing the market price.

Tax incentives

Regarding the tax motivation, the PSOE is committed to an improvement in the personal income tax regulation to stimulate the rental of habitual residence at affordable prices, through the modulation of the current reduction of 60% in the net income of the habitual residence rental .

But also, to apply a corrective element that favors moderation in rental prices in areas with the greatest supply problems, the socialist proposal includes establishing, in the new rental contracts, a general reduction percentage of 50%, which would reach up to 60% in the case of renting recently renovated homes and up to 70% when renting to young people between 18 and 35 years of age or signing long-term contracts.

Vulnerable groups

The PSOE’s proposal also contains specific measures for vulnerable groups, for whom it establishes the priority application of the Program to help victims of gender violence, people who are evicted from their habitual residence, homeless people and other especially vulnerable people, of the Plan State Housing.

In addition, it puts on the table a strengthened program in 2020 that allows the Autonomous Communities to provide an immediate housing solution to people who are victims of gender-based violence, to people who are being evicted or thrown out of their usual home, to the homeless and other particularly vulnerable people, with aid of up to 900 euros per month, plus 200 euros for household supplies or services.

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