2023-05-05 00:22:49
Friday, May 5, 2023, 00:22
“Politicians are very hypocritical by not explaining why there are no public rentals in Spain.” Professor of economics at the University of Barcelona and a regular contributor to television programs, Gonzalo Bernardos is one of the expert voices in the real estate market most critical of the housing law. Both in substance and in form.
In the form because, in his opinion, the regulation was not created to solve a problem but “because of Pedro Sánchez’s need to satisfy ERC”. «The Government is boasting of having made the first housing law of democracy. Yes. No other executive had done it before because the central Administration has almost no competence in the matter. That is, you cannot enforce compliance. What sense did this law have then? It is a political pact », he explained in ‘The real estate corner’ of Investment Strategies.
And basically because, in his opinion, the new law will restrict the offer and make access to it much more difficult. Bernardos has been very critical that there is nothing positive about it. «There are communities that have tried public rentals but have found themselves with a very high delinquency. The politicians themselves recognize how much it annoys them that there are people who can pay and they do not do it because they know that politicians do not want problems and they are not going to kick them out. In other cases he is in the little respect for property that some tenants show, so many floors have to be fixed. “In the end we have created a model in which the tenant, even if he is a squatter, matters as much as the owner and from that dusts this sludge.”
He also points out rental price control as a serious problem, referring to the Catalan Rental Law, “not only could you not raise the rental price, but when you signed a contract you had to set the same price as the first year of the last contract, lowering it significantly. We already know the experience, it was a total disaster »and he details the problems that the sector had to face then and the ones it has to face now.
He assures that this law is going to generate a very large displacement of investments and that the great beneficiary will be Madrid, “because many more developers are going to be displaced and the promoters are greatly affected and many investors are also going to be displaced. In Madrid and Andalusia, especially in Malaga, there will be this displacement and we will see an increase in wealth and housing supply “and he is sure that in those autonomies in which the PSOE governs, this measure will be applied.
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