Spain's controversial new "Law on the Right to Housing", more often known as Spain's new Housing Law, came into force on 26th May 2023 following its publication on 24th May in the Official State Gazette (BOE). Despite being strongly criticised by a large part of the real estate sector, it will bring with it a regulation on evictions, the possibility of taxing empty homes more, confirmation of the cap on rent updates, new tax incentives for homeowners and the creation of a new reference index, which will say goodbye to the CPI. The biggest controversy centres on the figure of the "large landlord" and leaving the creation of rental tension zones in the hands of the Autonomous Regions, which will control the rental market.
This regulation becomes the first state law regulating the right to housing since the approval of the Spanish Constitution. It will bring with it rules of competence to be applied by the Autonomous Communities, which have full competence in housing matters.
The Law on the Right to Housing was created to articulate article 47 of the Spanish Constitution (EC), which recognises the right to enjoy decent and adequate housing and then imposes on the public authorities the duty to promote the necessary conditions to guarantee equality in the exercise of rights and the fulfilment of constitutional duties and to establish the relevant regulations to make the aforementioned right effective.
Until now, housing policies in Spain have been developed through the different so-called Housing Plans, although they have been mainly focused on an expansive policy and the promotion of ownership, "materialising a housing policy based fundamentally on the promotion of the production of a growing volume of housing, the occupation of new land with the consequent growth of cities and the commitment to ownership as an essential form of access to housing", as stated in the preamble of the BOE.
As indicated, of the total housing built between 1962 and 2020, 31.5% was subsidised housing, that is, some 5.7 million dwellings that were developed under some kind of public protection regime, but most of which, despite the significant public effort made in their development and construction, have ceased to be subject, in relatively short periods of time, to any kind of sale or rental limit.
The fact is that the current public rental housing stock is totally insufficient to meet the needs of those people and households that find it most difficult to access the market due to their limited financial means. These are the objectives pursued by the new Housing Law in Spain:
- To establish a basic regulation of the rights and duties of citizens in relation to housing, as well as those associated with home ownership, applicable to the entire national territory.
- To facilitate access to decent and adequate housing for people who have difficulties in accessing housing under market conditions, paying special attention to young people and vulnerable groups and favouring the existence of a supply at affordable prices and adapted to the realities of urban and rural areas.
- Provide effective instruments to ensure the functionality, safety, universal accessibility and habitability of housing, thus guaranteeing the dignity and health of the people who live in them.
- Define the fundamental aspects of state planning and programming in the area of housing, with the aim of favouring the exercise of this constitutional right throughout the territory.
- To regulate the basic legal regime of public housing parks, ensuring their development, protection and efficiency in order to attend to those sectors of the population with the greatest difficulties of access.
- Encourage the development of housing typologies appropriate to the different forms of cohabitation and habitation, favouring adaptation to the dynamics and current demands of households.
- Improve protection in housing purchase and rental operations, introducing the minimum information necessary to provide security and guarantees in the process.
The full details of Spain's new Housing Law can be found in our guide.