Sumari rejects the housing purchase guarantees that the Council of Ministers will approve this Tuesday. The coalition believes that empirical evidence from other countries shows that measures such as the one announced this weekend by the Prime Minister, Pedro Sánchez, are inflationary and will ultimately benefit banks, especially in a context of high interest rates such as today.
Sánchez announced this Friday at a meeting in Vigo that the Council of Ministers will approve a line of guarantees of 2,500 million euros through the Official Credit Institute (ICO) to enter the home for young people and families of minors. to impose This is a similar measure that the president announced in May during the regional and municipal campaign, which has now recovered. This is a program that regional governments like Isabel Diaz Ayuso have also launched.
An event not supported by summar. According to coalition sources, evidence from these programs (called Help to Buy) in countries such as the United Kingdom, Canada or Australia shows that incentives to buy a home “could push prices even higher” because “promoters absorb all the help.” This type of policy, they say, will ultimately benefit “mainly banks in a context of high interest rates.”
Sumar believes that the government should prioritize other measures to solve the “serious problem” of housing affordability in Spain, and that is why he has presented his partner with a series of proposals that will be discussed in the next general state budget negotiations.
Measures to be negotiated in the budget
Some of these initiatives are aimed at improving the housing law that the executive branch approved in the last legislature. Among other things, they demand that the norm be extended to communities that oppose its application. The law was approved in the middle of last year, shortly before the 28 millionth election, where the majority of the autonomies fell into the hands of the PP, which refused to comply with the rule, which must be used mostly by communities and cities. Councils, since it is those administrations that have delegated housing authority.
They also suggested the PSOE regulate seasonal rentals and promote “more demanding regulation of tourism rentals.”
Summar wants the government to promote public housing: he is calling for the biggest investment in public housing in history to “achieve 20% social rental housing”; and “Contribute to this goal by mobilizing Sarbi-owned public land and housing, advancing the process of transferring Sarbi assets to autonomous communities, subject to their use as public rental housing for social purposes.”
But Summar also suggests four other measures. to prohibit the purchase of those houses that will not be used for the buyer’s permanent residence in the places announced under the conditions established by the housing legislation; End the Golden Visa, programs that encourage the granting of legal residency in exchange for strong investments in the country; “Establishing the right of first refusal and right of refusal for all public administrations in large real estate transactions”; and “reserve rental tax relief for people and companies that rent below reference prices and tax empty homes more”.
Another measure that Sumari intends to propose is the preparation of a reference index, which is required by law but has not yet been published. This is a price index to limit rents in stressed areas. “In relation to the mortgage market, it is also necessary to make mortgage portability between banks mandatory and to link the fixed mortgage loan interest rate to the state debt,” they further state.
Source: El Diario