Spain | Consensus needed on housing policy

Summary

The fact that there is not enough affordable housing in Spain right now is not up for debate. However, as last week’s proposals show, not everyone agrees on the solution.

Key points

• Key points:
• Committing to measures reliant on the public coffers will fall short of the mark without a consensus. Firstly, because as of this year, Spain is in the midst of a fiscal consolidation process in compliance with new rules emanating from Europe.
• Second, because the increases we have seen in direct taxation are creating less leeway to ensure that further tax hikes do not erode economic activity.
• Lastly, because the public accounts are facing further pressures on other fronts, including pensions, health care and, before long, other components such as defense.
• The situation calls for a State pact on housing that garners overwhelming levels of political support. Boosting the availability of affordable housing, on a large scale and quickly, requires the mobilization of private resources.
• To generate the necessary investment, lessors and developers need a reliable regulatory framework and legal certainty that the situation will not change again any time soon.

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