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Spain Is Set to Enact a New Housing Policy That Would Put A Restriction On Rent Costs

Spain Is Set to Enact a New Housing Policy That Would Put A Restriction On Rent Costs

Members of Spain's coalition government, the Partido Socialista Obrero Espaol and Unidas Podemos, have agreed to pass a new housing law with the purpose of lowering rent rates and establishing a right to housing. In a Cabinet meeting on Tuesday, Spanish Prime Minister Pedro Sánchez approved a draft of the bill and proposed a housing budget of 2.25 billion euros.

The bill is in response to the present housing crisis in Spain. Young Spaniards have the highest unemployment rate of any of the 19 euro-using countries, at 35%. Unemployment and rising housing costs have made it difficult for many young people in Spain to find a place to live.

This rule mandates that 30% of new housing developments be set aside for social housing. Tax incentives will be established to encourage landlords to lower their rents, as well as a stricter regulation imposing a rent cap ceiling on owners of 10 or more properties in Spain.

The bill also includes a Youth Housing Voucher, which provides 2,500 euros per month to young people aged 18 to 35 who earn less than 23,725 euros per year. Direct rent subsidies of up to 40% of total rent paid could be used to replenish this endowment.

The law will be brought to the Presupuestos Generales del Estado 2022 (General State Budgets 2022), where it will be discussed before being ratified by Parliament and the Senate.




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