2023-12-28 03:53:10
Nowadays, having access to a home has become increasingly complicated, which has increased the option of renting in recent years compared to buying a property, due to inflation and rising prices, the lack of prior savings and job stability with decent salaries, as well as the increase in mortgage prices, among other reasons. Even so, renting is still perceived in our country as a transitory situation prior to owning a home, in transit to the desired property. Specifically, 79% of tenants aspire to be owners of the home they live in within 5 years. However, less than half, 42%, think they will achieve it.
The truth is that there are 18.5 million main homes in Spain. And there are almost three million families living in rental homes, which represents 16% of the total. All of these are data published in a study prepared by the Organization of Consumers and Users (OCU), in its real estate magazine OCU Fincas y Casas, on the vulnerable consumer and the barriers to accessing rental housing. The objective of this market analysis is primarily to identify and analyze barriers to accessing housing for the vulnerable consumer, with a particular focus on the rental sector.
The study shows that the demand for housing has increased, promoted by the creation of jobs and new homes, as well as the increase in the population. This housing requirement is concentrated more in the most dynamic areas and cities in terms of the labor market, which has led to an increase in the cost of rent, in turn complicating access to housing and making families’ economies precarious. In fact, 63% of Spanish tenants have to allocate more than 30% of their income to pay rent and expenses related to said rental home.
It must be taken into account that the OCU considers a vulnerable household to be one that spends more than that percentage to pay the rent. Therefore, the percentage of vulnerable households increases and, in the case of households with fewer resources, accessing a rented house can become a “mission impossible.”
In general, according to the study, tenants are younger and have a lower income level than owners. Those of foreign origin are the ones with the greatest representation, making up 33% of the tenants. If we look at the group of renters we see that 34% have an income of up to 1,500 euros per month, while up to that interval only 19% are owners. Likewise, 26.6% of tenants live in a difficult or very difficult family situation financially, compared to 21% of owners who claim to be in that type of situation. On the other hand, 30% of homeowners have a mortgage for an average value of 642 euros, after the increase in the last year of 92 euros (15% more), while 70% of families have already paid his living place.
Furthermore, 85% of the rental housing supply in our country comes from private owners. Therefore, it is more common for them to be rented directly to families and the participation of real estate agencies is relegated to a third of the cases. It also stands out that only 3% of tenants access public rental housing. And there is an investment deficit in this type of rental housing, for which a plan has not yet been implemented to correct it.
Despite not having reliable statistics, different entities, both public and private, explain the decrease in the private supply of housing as a consequence of the fear and concern of landlords regarding the possibility of not collecting rent, of suffering damages. in the home and losing your property in case of non-payment. This situation exacerbates the instability of the sector, taking into account the growing demand and a decreasing supply. And all this takes place at a time when there are 3.8 million empty homes in Spain, with the rise in rental prices “that does not stop”, in the absence of an alternative to the basic need for housing beyond rent. sharing and leasing of rooms, “which grow day by day.”
33% of landlords are retired
If we focus on the profile of the landlord, the study highlights that 58% are self-employed or employed and another 33% are pensioners or retired, while 6% are unemployed and 2% are dedicated to their work.
Regarding home economics, 9% of landlords consider it difficult or very difficult (compared to 26.6% in the case of renters and 21% of homeowners in general).
Likewise, 76% of landlords have only one rental home, compared to 14% who own two and 10% who say they have three or more. If we look by type of housing, 89% of the cases correspond to an apartment, with three bedrooms in 46% of the properties and 2 bedrooms in 33% of them.
Regarding problems with rent, 24% of the landlords consulted acknowledge having had them, the most common being non-payment of rent (57% of cases), a problem that affects 14% of all landlords. On the other hand, damage to the home accounts for 37% of the problems and affected 9% of total landlords, and delays in rent payment accounted for 36% of the problems, affecting 8% of all landlords. While complaints from neighbors represented 14% of the problems and affected 3% of all landlords.
Payrolls to sign the contract
When choosing a tenant candidate, the document that is most required of the applicant to present is the latest payroll, which was the case in 61% of the cases, followed by the employment contract (58%) and the income tax return ( 2. 3%).
Regarding the amount of the average monthly income (based on global data for all respondents, without making a distinction by region) it rises to 605 euros. 15% of tenants pay between 751 and 1,000 euros, while 7% pay more than 1,000 euros per month. However, the group that pays a monthly rent that ranges between 301 and 500 euros is more numerous, which constitutes 32% of the total, four tenths above the percentage of tenants who pay between 501 and 750 euros.
recommendations
On the other hand, according to this study, if we focus on the recent evolution of prices, it could be concluded that public aid to tenants is not driving a containment of this increase in the cost of rent. Families considered most vulnerable can hardly access the rental market taking into account the rise in prices and the tightening of requirements when selecting tenant candidates. Thus, the existing supply of public housing and the social resources put in place are insufficient to provide the necessary support to those who cannot find decent housing on the market.
Given the panorama described, the OCU recommends, on the one hand, the urgent adoption of an “ambitious plan” for investment in public rental housing “that goes beyond speeches and proposes realistic annual goals, seeking formulas for public collaboration.” “private.” It would be a strategy that not only consists of building more, but also rehabilitates and attracts underused private housing to be used for public rental. And the agency assures that there are at least 600,000 public homes necessary to incorporate into the park on a rental basis, an amount that would facilitate a “stable impact” on it, where there are currently almost three million rented homes.
Likewise, according to the study, the fastest way to expand the offer is to provide legal security to private landlords, who represent 80% of the providers of rented houses in Spain. “It would not be unreasonable to aspire to mobilize for rent” some 500,000 homes that are currently empty in cities and areas with demand, the organization states.
In addition, it is added that legal certainty would “also facilitate” funds and REITs (Listed Real Estate Investment Companies) to contribute with greater private investment in rental housing, collaborating in the professionalization of the market.
On the other hand, extraordinary measures such as rent control or the suspension of eviction procedures, they assure, must be proposed exceptionally, limited in time and under well-defined circumstances, in order to prevent the opposite effect from being achieved and retract the offer.
OCU demands that aid be concentrated on the most vulnerable groups, increasing the provision of public rental housing and the resources of social services necessary to support these most vulnerable households, without this meaning a reduction in them, but rather that go to the families that need it most. Likewise, with the aim of promoting the availability of sufficient funds to guarantee support for the most vulnerable tenants, it is recommended to review the aid for rent, given that, according to the agency, they could contribute in some cases to an increase in prices. .
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