The political parties’ proposals to combat the housing crisis
The housing crisis that Spain has been experiencing in recent years has worsened due to the lack of supply in the home buying and rental markets, the rising cost of construction, and the limited availability of developable land, making it a central issue in political debates and media agendas. In response, political parties are focusing on designing different proposals aimed at safeguarding market stability and improving access to housing, leading to a continuous flow of new initiatives.
PSOE government proposals to address the housing crisis
In this context, the PSOE recently proposed a package of 12 measures focused on three objectives: “more housing, better regulation, and greater assistance.” Now, the Minister of Housing and Urban Agenda, Isabel Rodríguez, is calling for consensus to implement measures that most parties agree on, such as raising VAT on those who use housing “not as a place to live, but as an economic activity,” referring to short-term rental properties. Among the new measures proposed by the Ministry, a major tax reform stands out, aimed at tackling tax evasion in seasonal rentals and ensuring that they are taxed as businesses. Additionally, the government seeks to streamline administrative processes related to new housing construction by relaxing building regulations and project approvals, with the goal of cutting construction times in half.
The government has also urged the Partido Popular to take a position on the measure regarding the full application of VAT on the Property Transfer Tax or the introduction of a new tax rate for non-resident investors in housing, arguing that reducing purchases by foreign investors could help curb speculation.
Partido popular proposals
On the other hand, the main opposition party, the Partido Popular (PP), presented a Housing Plan that includes a series of amendments to four existing laws: the Land Law, the Housing Law, the Contentious-Administrative Jurisdiction Law, and the Law on Public Works Concessions. The common objective is to mitigate the current housing crisis and prevent housing from becoming a luxury asset.
Additionally, the party’s leader, Alberto Núñez Feijóo, announced a “household savings fund” that includes tax deductions aimed at helping young people under 40 acquire a home. This initiative seeks to encourage savings by applying a 20% income tax deduction on contributions made by young people.
Another proposal recently included in the plan aims to ease the barriers that, according to the PP, are affecting the real estate market, such as accelerating land transformation processes to increase available land for housing construction, cutting deadlines in half. The plan also includes incentives for housing developments in low-demand areas, outside of major cities.
In this regard, José María Gómez-Acebo, Director of Institutional Clients at Urbanitae, calls for action: “Recognizing that in the next 20 years, much more land will be needed for housing, measures can be implemented in the short term to address the current problem.” For this reason, he highlights the importance of changing land use designations to residential purposes for plots classified as commercial under municipal planning regulations, allowing the development of publicly protected rental housing.
Vox proposals
Vox strongly criticizes the government, arguing that its policies prevent young people from accessing decent housing while prioritizing electoral interests. In response, the party proposes legislative reforms and modifications related to land use and regulation to promote the creation of new housing. Additionally, they seek to establish a favorable tax environment for both renting and buying homes. Other measures focus on providing tax incentives for national investors, promoting modifications that prioritize Spanish citizens over foreigners in homeownership access.
Podemos proposals
The left-wing party Podemos is primarily focused on tourist rentals, considering them a major problem. They propose banning tourist accommodations as a way to control prices and ensure access to affordable housing. Furthermore, Podemos supports the government’s proposal to intervene in the market by prohibiting foreign investment funds from purchasing homes.
“The obsession with imposing restrictions does not solve the problem. Limiting profitability discourages developers and real estate investment funds, preventing the necessary housing from being built. Reducing the returns for those interested in investing when we lack supply only worsens the situation,” explains Gómez-Acebo.
The Urbanitae expert also clarifies that rising rental prices are a direct consequence of increased demand: “When a landlord notices a significant rise in demand in a given area, it is understandable that they raise rental prices. Until now, the solutions implemented have not adequately addressed current needs.” He also notes that the current situation is vastly different from the 2008 crisis, stating, “Back then, the problem was an oversupply of housing, whereas today, we face the opposite situation—demand far exceeds supply.”
What the ECB says about the housing crisis
Against this backdrop, Luis de Guindos, Vice President of the European Central Bank (ECB), has called for a “reassessment of housing regulations” in Spain, describing the current situation as problematic. Regarding Spain’s economic growth, he explains that population increases have led to a contraction in housing supply, affecting both construction and rentals, and urges the government to reach an agreement.