The Spanish government already has a first estimate of what the impact on public accounts may be due to the measures introduced to help vulnerable rental tenants that were recently announced.
In total, the effect of the rental subsidies will be around 800 million euros, including micro-loans for households affected by the coronavirus crisis and direct aid for those who, once this period has passed, are still unable to pay their rent and/or pay for basic household supplies.
The Royal Decree-Law approved by the Executive estimates that the measures could benefit half a million families. This includes the introduction of micro-loans for all those who cannot pay the rent of their homes due to the loss of employment, those who have received an ERTE (temporary lay-off) or those given reduced working hours. This also includes self-employed workers, with these loans being guaranteed by the State. It has also been stated that these loans can be paid back in six years, extendable for another four. This is a measure with spending that could reach up to 100 million euros from the public pot and that will come from the budget of the Ministry of Transport, Mobility and Urban Agility (formerly known in Spain as Fomento).
To this amount you then have to add the potential 700 million euros budgeted for direct aid of up to 900 euros to pay rent and 200 euros for household bills to all those tenants who remain unable to meet these payments once the coronavirus crisis passes.
Apart from these economic aids, the Government has also approved the extraordinary extension of six months in the leases of habitual residences that expire in the two months following the entry into force of this rule (therefore, the owner will not be able to raise the rent during the next six months), and also the suspension of evictions for six months (a measure active from the end of the state of alarm) for those tenants in situation of vulnerability who are left without alternative housing. Another of the measures approved is the moratorium or cancellation of rent.