Spain's Housing Decrees Take Effect: Funds and Large Holders Barred From Buying Below 70% of Market Value
Spain's Ministry of Housing and Urban Agenda issued a detailed note on October 8 on the two housing royal decree-laws approved by the Council of Ministers on October 6. Both texts were published in the Official State Gazette on October 7; because the Cortes have been dissolved ahead of the snap election, they must be validated by Congress's Permanent Deputation. The first decree-law, aimed at protecting the social function of housing and curbing speculation, is already in force; the second, on stability of ordinary rental contracts, would enter into force on November 15 if validated.
Under the first decree-law, until December 31, 2030, companies, funds and other entities whose business is acquiring homes or portfolios of unpaid mortgage loans, as well as legally defined large holders, may not buy housing for less than 70% of its market value as determined by an independent appraisal company. The government says the cap is meant to squeeze speculative bargain purchases.
Presenting the package on October 6, Prime Minister Pedro Sánchez said the two decree-laws contain 21 measures, including a 10 billion euro financing line offering interest-free loans of up to 50,000 euros to first-time home buyers, and 280 million euros in guarantees to promote industrialised housing construction and expand supply. The plan also relies on the public housing entity Casa 47 to grow the stock of affordable public housing.
Housing was the trigger of the snap election. On October 2, Congress voted down earlier versions of the two decrees; three days later Sánchez dissolved the Cortes and called elections for November 29. The ministry's note stresses that the re-approved decrees keep the substance of the originals while adding the new financing measures. (Source: Ministry of Housing and Urban Agenda, Spain)
Source: Ministry of Housing and Urban Agenda, Spain
Published by GSM · USA (original Chinese edition)
Photo: 图：西班牙城市住宅楼（资料图）。Wikimedia Commons 开放授权。 / Photo: Residential buildings in Spain (file photo). Wikimedia Commons, open license.
