2024-01-04 11:52:01
The last Council of Ministers of 2023 approved the extension of the decree of the so-called ‘social shield’ to combat the effects of inflation, the energy crisis and the war in Ukraine. Among the measures announced by the Government, the extension of the suspension of evictions and launches of habitual housing for vulnerable people and families until 2025as well as the possibility of requesting compensation from the landlord or owner affected.
The stoppage of evictions has unleashed criticism from the real estate world, which warns that not only will the supply of housing in the rental market be hindered, but it is also encouraging voluntary non-payments by tenants.
This is what the Madrid real estate association AMADEI considers, which describes the measure as “counterproductive and very harmful” for the evolution of the rental market, as it contributes to “generate greater legal uncertainty by approving the contractual breach derived from the non-payment of rents”, as explained in a report.
The organization criticizes that “the measures that the Government has been adopting with its interventionism in the real estate market since 2020 “They border on the unconstitutional and cover up their inability to generate a public housing stock intended for rental.”
In the specific case of the suspension of evictions, the Madrid real estate association warns that “encourages non-payments to become, in many cases, voluntary and unjustified, since the tenant knows that their non-compliance will not have consequences in the medium term“. Meanwhile, he adds, “the compensations that the Government has designed become late and cumbersome in their processing and do not contribute to reducing the immediate damage.”
AMADEI states that “lThe debt for unpaid rents has an increasingly evident ‘snowball effect’, to the point that it is impossible for the lessor to recover what is owed due to the lack of solvency of the delinquent tenant. If you add to that the impossibility of recovering their home, the damage is doubly worse, so that a large part of the landlords, who are small owners who have saved to buy an apartment and rent ito To complement their retirement pension, they find themselves paying mortgage, community and IBI for the rented apartment without generating a single income.”
In this context, the Madrid real estate association recalls that the rental supply has decreased by 30% and rents have increased by 20% in recent years, which is causing “the rental market becomes unworkable” for families with childrenespecially if they are single parents, given that they are considered potentially vulnerable.” In fact, he assures that he is detecting that The owners avoid renting apartments to families with minor children.
In his opinion, the key is to “adopt measures that favor housing solutions for vulnerable families, but never at the expense of private assets.”, but by promoting homes to accommodate these families with public resources.” That’s why, urges the Government to modify its rental policy“which in no way is a social protection policy, since it harms many more people than it benefits”, and believes that “as long as the Government is not able to perceive that lowering rent involves having more supply than demand , there will be no way to respond to the housing need of so many affected by an erratic and populist policy.”
In addition to AMADEI, Rental Insurance has also criticized the extension of the stoppage of evictions, understanding that the measure will eliminate affordable supply in the market, because owners will not want to rent a home due to the risk of having to They will be the ones to take charge of possible non-payments of vulnerable families.
“With this extension, really the social work, by force, is being done by the owners, who are the ones who will finally assume the non-payments, the damages and the uncertainty of not knowing when they will be able to recover their rented home,” he said. pointed out the president of Seguro Rental, Antonio Carroza.
Who can benefit from the eviction stoppage?
The expansion of protection measures was approved for those vulnerable households that face eviction procedures from their habitual residence, with the coordinated action of the judicial bodies and the competent social services.
Here Households affected by procedures to launch their habitual residence would be included.which do not arise from rental contracts, when there are dependent people, victims of violence against women or minors in charge.
In this last case, the possibility is established that the judge, after a weighted and proportional assessment of the specific case, has the power to suspend the launch, when the owners of these properties are natural or legal persons owning more than 10 homes, requesting Inform the competent social services to assess the situation of economic vulnerability and identify the measures to apply.
In these cases, those that have already been regulated in which suspension can never be issued and are: when the home is the habitual residence or second residence of the owner, when it occurred in a property owned by a natural or legal person who has transferred it by any valid legal title to a natural person who has his habitual residence there or duly accredited second residence.
Likewise, when the entry or stay in the property has occurred through intimidation or violence against people, when there are rational indications that the home is being used to carry out illicit activities; in the case of properties intended for social housing and the home has already been assigned to an applicant or entry into the property has occurred after the entry into force of Royal Decree-Law 11/2020.
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