
The Spanish Rental Negotiating Agency (ANA) claims that Spain's new Housing Law will lead to a "drastic" reduction in the rental market supply, as well as many other "undesirable effects" that the organisation has identified. ANA's director general, José Ramón Zurdo, has stated that the new Housing Law is going to be "disastrous", not only for landlords but also for investors, developers and even tenants.
Zurdo added that these "negative effects" have already been observed in the rental market over the last two years with the laws that have been passed.
The ANA explained that all the measures contained in the law "go against landlords and investors", who are the only ones who can generate supply. It also pointed out that it will negatively affect property developers and that the numerous limitations imposed will cause investors "not to make the numbers work".
The organisation also estimated that some real estate agencies involved in the rental market could disappear, as "they will not be able to charge their fees to tenants". They also pointed out that one of the possible options would be to charge landlords said fees.
After implementing the law, the agency pointed out that legal uncertainty could increase when a landlord has to recover their property due to non-payment by a tenant. Moreover, tenants could also be disadvantaged by the limitations imposed on landlords, as they could "considerably stiffen" the requirements to access the housing they offer.
The ANA highlighted that the Housing Law could cause the rental market to shift towards other types of property, such as tourist or commercial properties, and there will be a trend towards buying and selling. "Economic and social inequalities" could also arise between areas and autonomous communities that may or may not want to apply the new regulations.