Economists believe that the housing law will further reduce supply

by time news

2023-05-16 13:52:30

The first reactions of the experts on the housing law they are not positive. This Tuesday it was the turn of the General Council of Economists of spainwhich brings together the 43 state colleges and 55,000 professionals, who in a discussion with experts lasting just over an hour, has dissected the new standard that is in process to conclude that it will not serve the purposes announced by the Government and that, in addition, it will reduce the volume of rental flats instead of making more available to the public.

Even though until president Of the entity, Valentin Pichhas tried to ensure that the four speakers were not so “negative” in their presentations, all the questions or assessments that have been put to them have served to insist that the housing law, promoted by the Ministry of TransportMobility and Urban Agendahe will fail in his will to help the mercado and will block access to rental housing for sectors with less income level.

Less legal certainty

The norm will entail, they have warned, that be expelled to this population of the market, without helping them as it is intended. The reduction in supply, as has already happened in Catalonia according to several studies, or the increase in legal uncertainty due to the increase in protection measures against evictions are other aspects to criticizeaccording to Julian Salcedopresident of the Forum of Real Estate Economists of the College of Economists of Madrid, one of the four participants in the meeting in Madrid.

The General Council of Economists discusses the new housing law. In the image, from left to right, Joan Ràfols, Ángel de la Fuente, Valentín Pich, José García Montalvo and Julián Salcedo. GENERAL COUNCIL OF ECONOMISTS


He House Speaker of the Urban Property of Barcelona, Joan Ràfols, has also added that “the law is not based on serious analysis and there are jurisdictional conflicts with the autonomies”. “There are poorly made definitions and as progress was made in the drafting of the draft, it has been losing the positive parts when the minority parties entered their ideologies“, he complained.

Benchmarks

The description of big fork It has been another of the issues that the speakers have regretted because, according to them, it will discourage owners with a certain number of homes. In addition, the small size of the rental fleet in Spain and its spatial and typological dispersion limit the reliability of the reference indices for pricing.

For his part, the professor of Economics at Pompeu Fabra University, Jose Garcia MontalvoHe also added that “there is no oligopoly in this sector and those who are called large holders have few units. They have made a mistake in the definition and therefore the result will also be bad”, he concluded.

counterproductive effects

The Economist angel of the fountainexecutive director of the Fundación de Estudios de Economía Aplicada (FEDEA), added that the new housing law “is confusing and unclear, and is committed to some policies that will have counterproductive effectssuch as price controls, forced extensions of contracts and the greater difficulties to recover properties in the hands of problematic tenants”.

#Economists #housing #law #reduce #supply

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