02 02 OCTOBER 2020 Diàlegs d’Habitatge The option of rent regulation in response to the affordable housing shortage An analysis of the rented housing situation in Barcelona in the context of Catalonia and Spain, and European and international examples of price-control policies Diàlegs d’Habitatge The option of rent regulation in response to the affordable housing shortage The option of rent regulation in response to the affordable housing shortage An analysis of the rented housing situation in Barcelona in the context of Catalonia and Spain, and European and international examples of price-control policies Organised by: Barcelona Municipal Institute of Housing and Renovation Rapporteur: Irene Peiró Compains 02 03 01 04 05 06 08 07 09 10 3 01 06 Introduction ................................. 5 Benchmark rent regulation policies in Europe and the 02 rest of the world .....................60 An historic look at the 6.1 Berlin ..............................................63 reasons for the affordable 6.2 New York ........................................ 75 housing shortage 6.3 Paris ................................................85 in Spain ............................................. 8 6.4 Vienna .............................................91 03 07 The current situation with Positions on rental regard to rental housing in price regulation ...................... 96 Barcelona in the context of Catalonia and Spain ..............18 08 Conclusions .............................. 107 04 The rent debate at the 09 institutional level ...................28 Annexe .......................................... 119 4.1 The debate on rent- .................... 29 price regulation at the State level 10 4.2 The debate on rent- ................... 38 Bibliographical price regulation in Catalonia reference ..................................... 155 05 Rent regulation within the framework of a global housing policy strategy.... 47 CONTENTS 5 Introduction How can fair and affordable rent prices be guaranteed? This is a question that we have asked ourselves time and again over the last few years, although the issue has only recently entered the public agenda in a country where the culture of ownership has been promoted historically (and well into the 21st century) as the prevailing model for access to housing. The subject has been gradually introduced into the political and media agenda as increasing numbers of people have opted to live in rented properties, both in Catalonia and in the rest of the Spanish State, and lease prices have risen more and more, two phenomena that have been occurring in parallel and with special intensity in large cities such as Barcelona. The start of the economic crisis in 2008 led to the impoverishment of large sections of the population and mortgage credit restrictions, hampering the option of buying a flat. The percentage of Barcelona’s population living in rented housing has already reached 35%. INTRODUCTION The number of people living in rented housing started rising at the same time as an upward trend appeared in lease prices, which have increased by 36.4% in Barcelona since 2013. This has unleashed an ever-increasing gap between family incomes and rent prices, which particularly affect people with more moderate or lower incomes, to the extent that it has become a factor that generates social inequalities. The worst example of this are rent-default evictions, which affect families unable to meet the cost of this price inflation and whose numbers have multiplied over the last few years. Whereas civil society organised itself at the start of the economic crisis in 2008 to fight against mortgage evictions, mainly through the Platform for People Affected by Mortgages (PAH), today it does so chiefly to demand fair and affordable rent prices with new movements such as the Tenants’ Union. In addition to these home-grown social movements, numerous neighbourhood associations, groups and unions continue to champion the right to housing through local approaches. Pressure from social movements has helped to put the issue of rented housing on the agenda over the last few years. The debate on rental price regulation reached Catalan and Spanish institutions alike between 2018 and 2019. In Catalonia, the regional government presented a proposal to regulate rent prices in the middle of 2019, which failed for want of support in the Catalan chamber. But following a complex process to reach the necessary political consensus, more recently, in September 2020, a new bill to regulate rent prices* promoted by the Tenants’ Union was enacted in the Catalan Parliament. * ACT 11/2020, of 18 September, on emergency measures for capping rental prices in housing leases and amendments to Act 18/2007, Act 24/2015 and Act 4/2016, on protecting the right to housing. 7 At the Spanish State level, during this Rights Observatory (DESC), working in collaboration government’s term of office, the government with Barcelona City Council’s Municipal Housing agreement between the PSOE and Podemos and Renovation Institute (IMHAB), organised a day political parties also provides for extending this event on 18 November 2019 on this issue. regulation throughout Spain, though it is yet to be Taking part in the event, which was held at specified and implemented. the Barcelona Lawyers’ Association Centre, The application of this measure has not been were representatives from Berlin and New York without controversy. One of the main criticisms City Councils, who explained how rent prices from its detractors is that price regulation will were regulated in their respective cities. The reduce the rental housing supply and will end up presentation was given by Florian Schmidt, causing the undesired effect of raising prices. By a sociologist, activist and head of urban contrast, its champions believe that this argument planning from Berlin’s Friedrichshain-Kreuzberg is founded on the perfect-competition market neighbourhood; and by Lucy Joffe, the Assistant dogma, which is not how the property market Commissioner for Housing Policy at New really works. They recall that, during the period of York City Council’s Department of Housing the property boom (1997-2007), the sharp rise in Preservation & Development. the supply of residential property for sale, far from The day event ended with a round table, moderated causing prices to fall, was accompanied by an by Irene Escorihuela, from the DESC Observatory, exponential increase in prices. taking part in which were Jaime Palomera, the Many cities in Europe and the rest of the world are spokesperson for the Catalan Tenants’ Union; already regulating rent prices. This publication will Maria Sisternas, an urban planner and architect, examine examples of such regulation in Berlin, and Marina Estévez, a journalist at Eldiario.es Paris, Vienna and New York. Its application is not specialising in housing. free of obstacles, however, and in many cases, This study is based on the content of that the price-control system initially thought up has day event and subsequent work entailing required tweaks and adjustments in order to interviews and documents, carried out mainly achieve its desired goals. in a pre-COVID-19 crisis scenario. The goal With the aim of furthering the debate on the effects is to continue furthering the debate on the of implementing price-regulation policies in our consequences of regulating rental prices in our local context, the Economic, Social and Cultural local area. We hope you find this study useful. INTRODUCTION 02 An historic look at the reasons for the affordable housing shortage in Spain 9 Compared to other European countries, The affordable housing Spain has a serious shortage of affordable shortage, a problem housing, above all rental accommodation. Almost half of Spain’s population (43%) that dates back to the renting a flat at market price spend early 20th century more than 40% of their income on rent. This is one of the highest housing cost The fact that Spain lags behind many overburden rates of all the EU member of its neighbouring countries when it states, surpassed only by Greece (84.6%), comes to housing policy, particularly Serbia (68.3%), Bulgaria (50.4%), Croatia central and northern European (45.2%) and Lithuania (48.3%), according to countries, is nothing new. It was more Eurostat data (2016). than a century ago that Spain drifted off the course being taken by many of Problems accessing rental housing are these countries which, at the start of further exacerbated by a second factor. the 20th century, had begun applying Spain has one of the smallest public- their first social housing programmes. housing stocks, rental housing in particular, The Francoist dictatorship only in Europe. Only 2% of Spain’s total housing worsened Spain’s lag in terms of stock corresponds to public and social housing policy, a lag which it has been rental properties, compared to 32% in the unable to reverse since the transition. Netherlands, 24% in Austria and 19% in Denmark. This is indicated in a reported Under the first social housing entitled “Gestión híbrida de la vivienda social programmes, industrialised countries en España. Hacia modelos colaborativos in northern Europe — such as Sweden, de provisión pública al margen del lucro” Denmark, Austria, Germany, the [Hybrid management of social housing Netherlands and the United Kingdom in Spain: Towards collaborative public- — aimed to respond to the first great provision models beyond profit] from the rural-urban migration wave of the Alternativas Foundation (2019). 20th century, which increased housing demand in urban centres. It was during the first half of the 20th century, then, that most European countries built up a considerable social housing stock. In the case of France, although there had already been a few initiatives in that respect, it was not until the 1950s and 1960s that the mass construction of social housing accelerated. 1 The context in Spain was quite different. HISTORICAL JOURNEY Spain’s authorities proved incapable of a rigid rent-price control in 1920, with responding appropriately to the first the so-called Bugallal Decree, which was rural-urban migration wave of the 1920s subsequently maintained during the and the new urban population ended up Francoist dictatorship and even well into living in shantytowns or substandard the restoration of democracy. By contrast, housing on the outskirts of big cities, due it did not follow the course taken by other to the shortage of social housing. The countries with regard to the expansion of only measures that were adopted, which the affordable housing stock. 3 were wholly insufficient, came from the From the end of the Second World War enactment of the first legislation on and up to the 1980s, many European cheap housing (1911 and 1922). 2 countries put considerable effort into A few small advances were made during rebuilding and expanding their housing the Second Spanish Republic (1931-1939), stock, especially social and affordable such as the construction of workers’ housing, for example, through subsidies residences and the enactment of and tax incentives for those developing legislation to fight unemployment, which such properties. That way they also met exempted housing with cheaper rent the growing housing demand arising from some municipal charges, but the from the baby boom. Spanish Civil War broke out before they had time to succeed. 3 The turbulent start to the 20th century in Europe, with two world wars (the first from 1914 to 1919 and the second from 1939 to 1945) and the Spanish Civil War in between, led to a considerable fall in housing stock in many countries across the continent. It was in this context, with the difficulties the continent faced trying to rebuild the housing stock at the pace needed, that it opted for policies to freeze rental prices, thereby slowing down the rise in price of the scarce housing supply. 4 In Spain’s case, its government adopted View of Carrer Argenteria de Barcelona. 1936. 11 The Francoist dictatorship exacerbated Spain’s lagging behind in housing policies While Europe was steaming ahead above all, in outlying neighbourhoods, building up its public and social housing intended for purchase. In fact, this was stock between the 1950s and 1980s, the period when access to mortgage above all rental housing, Francoist Spain credit began to be promoted among city was promoting the culture of ownership. residents to this end, credit that was It should be borne in mind that the provided at the time by a public bank: the 4 policy of autarchy adopted in the early Banco Hipotecario Español. years of the Franco regime hindered According to several authors, this the recovery of Spain’s housing stock, system also had a clear political purpose, given the initial shortage of foreign based on the premise that families with investors. The Francoist regime, mortgage debts would be more inclined to suffering from international isolation, resist harsh labour conditions and would passed acts theoretically aimed at be less predisposed to take part in social solving its housing-access problems disturbances. And we should remember, for large sections of the population. on this topic, the eloquent remark made The most notable was the Support by Franco’s Minister of Housing from Facility Housing Act of 1944, which is 1957 to 1960, José Luis Arrese: “We fundamental for understanding how want a country of property owners, not Spain's official housing-protection proletariats”. 5 system is configured, even today. These regulations promoted state-built dwellings for private ownership rather than for rent, the opposite of what was happening in the rest of Europe. During the 1950s, it was the regime itself that directly developed this housing, During the 1960s, the whereas, from the 1960s on, it opted to grant public funding to private property Francoist regime also developers to build it, the model that proved incapable of continues to this today. 4 adequately responding It was during the 1960s that the Francoist to the second great regime began to promote mass access among the population to privately migration wave of the 20th owned property, while continuing to century and shantytowns disincentivise the alternative of rental expanded again property. The so-called Horizontal Property Act of 1960 incentivised the construction of tall building blocks (with flats located horizontally one above the other) in cities throughout the State and, HISTORICAL JOURNEY During the 1960s, the Francoist From the Transition period to the emergence of regime also proved incapable of responding appropriately the property boom (1997-2007) to the second great migration wave of the 20th century, The Transition period saw when hundreds of thousands no substantial changes to The interests of of people moved from the the housing model that had the financial and countryside to the industrial developed during the Francoist property sectors, the hubs of cities such as dictatorship and the ownership liberalisation of land Barcelona, Madrid and Bilbao, culture continued to grow, and promotion of at the height of the period with the provision of mortgage ownership culture in of developmentalism. Once credit to the population the media, some of the again, the authorities failed to through private banks or tax key factors behind the adequately meet the housing incentives for purchasing flats, property boom 1997- demand of the newcomers, at the expense of renting. 6 It 2007 leading to further expansions of should also be borne in mind shantytowns. that, just when democracy in Spain began to take root, It was not until the final throes for high amounts over long a new trend appeared which of the Francoist period that the periods of time, so they went against the social policies regime started to dismantle could thereby receive more fostered by the State in the shantytowns, relocating the money as interest. In many previous decades. A new liberal people living in them to the cases, such loans were even wave was sweeping through large blocks of flats it developed awarded to people with little Europe and the rest of the on the outskirts of towns and financial solvency, in high-risk world, with Margaret Thatcher cities, in neighbourhoods conditions and at high interest in the UK and Ronald Reagan in lacking services and basic rates. the USA at the helm. infrastructures, described as Second, the property sector “vertical shantytowns” because In 1985, the famous Boyer was seeking to maximise of their living conditions. The Decree also liberalised returns and therefore aimed numerous protests held by the rent prices in Spain, after a to massively expand its residents’ movement of the late decades-long freeze, which led construction and sales activity. Francoist period demanded to an exponential rise in rental Third, the collusion of the improved living conditions for prices and made renting a less public authorities with the residents, especially in these attractive option — with prices interests of these two sectors outlying neighbourhoods. 6 often higher than mortgage resulted in legislative changes, rates — for most of the such as the Land Act of 1998, population. 7 The foundations known as the “ley del todo of the property boom that urbanizable” [“everything occurred between 1997 and developable act”]. From then 2007 had already been laid by on, all land was reclassified as the end of the 1980s, with the developable by default, unless convergence of various factors. it had some kind of protection First, it was influenced by declared for it. The spirit of the the interest banks had in regulations remained in force granting mortgage loans until they were reformed in 2007. 7 13 Fourth, we should not forget the important role played by the media and commercial advertising in reproducing the discourse of ownership culture, legitimising and promoting the interests of the property and finance sector. 6 This model led, on the one The financial and hand, to prioritisation of the mortgage crisis free property market over public and affordable housing and, on This shortage in public and affordable housing further the other, property ownership worsened the consequences of the economic and being preferred to property mortgage crisis of 2008, which broke the property-boom renting. Towards the end of the model. Facing a huge wave of housing evictions (570,708 property-boom decade, 80.6% occurred throughout Spain between 2008 and 2017, of Spain’s population lived in according to data from the General Council of the flats they owned, a percentage Judiciary ), the authorities lacked the capacity to provide that would fall from then on and housing alternatives to the people affected. which currently stands at 77.8% Paradoxically, the greater the public and social housing according to data from Eurostat demand, the fewer the efforts that were made to meet it. (2016). Even so, it remains The economic crisis halted the plans made for expanding considerably higher than the the public and affordable housing stock. Good evidence figures for other European of that can be seen in the systematic failure of the countries, such as Germany Catalonia Housing Act of 2007 (which established that (51.7%), Austria (55%), Denmark 15% of Catalonia’s housing stock should be public and (62%) and the Netherlands affordable within 20 years). (69%). It was in this housing-emergency context that social In addition, we should note movements such as the Platform for People Affected by that social housing in Spain Mortgages (PAH) organised themselves to put pressure can be reclassified once a on institutions to achieve, at least, measures for dealing period of between 25 and 30 with the most pressing needs. This social pressure gave has lapsed, depending on the rise to the State’s popular legislative initiative (ILP) of regional community — with 2013 for dation in payment and social renting, which the sole exception of the ultimately failed in the lower chamber, although it did Basque Country, since 2003, give considerable visibility to the demands of the PAH, and Catalonia since the start and the Catalan ILP against evictions and energy poverty. of 2020—, a measure that is The second initiative was passed in the Catalan chamber detrimental to the preservation and led to Act 24/2015. We should, of course, remember of the public housing stock. that a large part of its measures were halted for over 3 years by the Constitutional Court, following the appeals lodged by the previous Spanish executive led by the PP. HISTORICAL JOURNEY The reasons for rental price increases and the reaction of social movements Right up to the passing of Act 24/2015, the housing debate was essentially focused on mortgage as the “main reason” for the decline in the need to guarantee housing alternatives for housing purchases, López adds that this was also people at risk of residential exclusion, basically influenced by the “slight shift in mentality in favour through social renting. But the debate on of renting” that has been occurring over the last guaranteeing affordable rental housing for all city few years. “The percentage of potential buyers has residents, through price regulation policies, was been falling slightly year on year”, she remarks. still absent from the public agenda. This began to change, particularly from 2017 on, through the acceleration of the phenomenon known as gentrification and the lease-price bubble. Social movements believe that the reform of the LAU of 2013 also encouraged ANAÏS LÓPEZ (Fotocasa and Habitaclia) the increase in “The last few years have seen rent prices a growth in tenant numbers, partly because of the impossibility of accessing According to social movements such as the Tenants’ Union and the PAH, the reform of the housing to buy” Urban Leases Act (LAU) of 2013 is an additional factor. This reform, among others, reduced the minimum term for most leases from 5 years to 3 years and speeded up the processes for Several factors have contributed to the evictions, establishing that tenants had a increase in rental prices over the last few years. maximum of 10 days to pay the rent they owed, Anaïs López, the director of Communication from the date they receive the corresponding and Contents at Fotocasa and Habitaclia, notice from the property owner. It should be believes this increase is basically due to the noted that the LAU was reformed once more in rise in demand in a context where there is a 2019 and that the minimum term for leases is shortage of supply: “The last few years have currently back to 5 years. seen a growth in tenant numbers, partly because of the impossibility of accessing housing to buy”. The option to buy, for López, Another factor that has contributed to the rise has declined in favour of renting, owing to the restrictions on mortgage credits following the collapse of the property boom. While she regards difficulties in accessing a 15 IRENE ESCORIHUELA (DESC Observatory) The “malpractices of REITs” are causing huge increases in rent prices in rental prices is the activity of REITS (real- estate investment trusts), which are dedicated to purchasing and developing properties to let and which seek maximum returns for their shareholders, together with those of the investment funds that have entered the housing market. Escorihuela believes “their malpractices with tenants” have been demonstrated and demands that at the very least they should be taxed, given that REITs are currently exempt from paying corporate taxes, in addition to enjoying tax advantages. In many cases they buy up blocks of flats to then rent them out at a much higher price, which in practice leads to the expulsion of residents unable to afford the increase in rent. The urban planner and architect Maria Sisternas refers to the case of a block of flats in the Progrés de Badalona neighbourhood, purchased by the Lazora investment fund in July 2019. So, three months after acquiring the property, the investment fund started notifying its residents that it was going to increase their rent by 80%, from 1,000 euros to 1,800 euros, unleashing a unanimous rejection from social movements. According to Sisternas, not only social movements but also the owners themselves should position themselves in favour of “an internal control” and “self-regulation” of property activity, to protect against such malpractices. Given all the factors that have contributed to the Maria Sisternas during her talk at the Rent Regulation Conference held at ICAB on 18 November 2019. HISTORICAL JOURNEY JAIME PALOMERA Renting ought to be seen as a life-long residential Netherlands, Portugal, Italy, Greece, Sweden, Denmark , Finland, option and not as a Switzerland, Germany and Austria) temporary solution with permanent leases, which can only be interrupted in legally established exceptional cases. With regard to affordability, as we will see in more detail in the following section, this is presently not guaranteed. 43% of the metropolitan exponential growth of rent prices over area’s residents spend more than 40% the last few years, the spokesperson for of their income on housing (when the Tenants’ Union, Jaime Palomera, the maximum recommended portion, believes rentals require urgent according to the United Nations, is just regulation, since currently close to half one third). When housing expenses of the population are being “condemned represent an overburden for family to extreme precariousness”. According finances, it is hardly surprising that to data from the Tenants’ Union, 42% the possibility of regulating rent prices of Barcelona’s residents live in rented is achieving greater social consensus. property (the official data put this at According to the Barcelona Municipal 35%). From their point of view, the Barometer of July 2018, three out of reason for this precariousness is twofold: every four people living in the city the lack of stability and the lack of described themselves as in favour of affordable tenancies. price regulation. “The question is not whether we have to regulate prices With regard to the stability of tenancies, but how”, concluded Palomera, before it should be noted that the State decree the recent passing of the Rental on Rentals of March 2019 extended the Price Regulation Act in the Catalan length of leases from a minimum of 3 Parliament in September 2020, on years to 5 years, an advance that social the initiative of the Tenants’ Union. movements appreciated but considered In any case, social movements now insufficient. According to the Tenants’ insist on the need for the effective Union, renting ought to be considered implementation of this regulation. as a life-long residential option and not as a temporary solution for those unable to buy, as occurs in Spain. Such is the case in the ten EU countries (the 17 HISTORICAL JOURNEY 03 The current situation of rental housing in Barcelona in the context of Catalonia and Spain 19 Having taken a journey through history to identify the reasons for the shortage of public and affordable housing in our country, in this section we go on to describe the situation as it stands today, based mainly on data from the Barcelona Metropolitan Housing Observatory (OHB), which have been supplemented with official statistics and various indicators from the The number of people Fotocasa property portal. Promoted living in rental housing by Barcelona City Council, the AMB, in Barcelona is growing Barcelona Provincial Council, and the Generalitat de Catalunya with support The director of the OHB, Anna Vergés, from the Catalan Social Housing maintains that, both in Barcelona and Managers, the OHB is dedicated in the rest of the metropolitan area, to producing studies for assessing “the number of people living in rental and designing housing policies in properties has been rising over the last the metropolitan area, as well as few years”, reaching levels similar to disseminating these data and making those at the start of the 1990s, before them accessible to city residents. the property-boom period (1997-2007), during which access to privately owned Detailed below are some of the current housing was basically promoted. As can trends in renting in Barcelona in the be seen in Table 1, the percentage of context of Catalonia and Spain as well rental properties is higher in Barcelona as other factors affecting the situation than in the metropolitan area as a whole. of leases in the city. A similar trend is found in Catalonia and in the Spanish State as a whole. TABLE 1. PERCENTAGE OF THE POPULATION LIVING IN RENTAL HOUSING 1991 2001 2011 2016-2017 Barcelona city 35.9% 28.5% 30.1% 35.0% AMB 28.1% 20.9% 23.5% 27.8% AMB without Barcelona 17.2% 12.0% 16.1% 20.0% Sources: Population and housing censuses from 1991, 2001 and 2011; Barcelona Institute for Regional and Metropolitan Studies (IERMB), metropolitan statistics on living conditions, 2016/2017. THE CURRENT SITUATION IN BARCELONA AND THE STATE TABLE 2. EVOLUTION OF PERCENTAGE OF Rent prices are rising LEASES VERSUS HOUSING SALES As the number of people living in rental 2006 2018 properties has been rising, so too have rent prices, especially since 2013, in big cities such 41.7% 71.6% as Barcelona. According to data from the OHB, lease lease AMB rent prices in Barcelona rose by 36.4% between 58.3% 28.4% 2013 and 2018. They rose less, by 28.3%, in purchase purchase the metropolitan area’s other municipalities, 27.3% 62.3% between 2014 and 2018. AMB without lease lease Barcelona 72.7% 37.7% However, the recent pressure on rent prices purchase purchase in Barcelona has been spreading to other municipalities in the surrounding metropolitan Source: Ministry for Public Works, from the General Council area (see Table 3). According to the latest of Civil-Law Notaries; and the Secretariat for Housing and data from the OHB, from 2017 to 2018, the Urban Improvement, based on deposits paid to Incasòl. rise in prices in the metropolitan area's other municipalities (6.7%) was already higher than the In the case of Catalonia, the proportion of rental rise in Barcelona (6%). properties rose from 16.6% to 23.6% between The rate at which rental prices increase is not 2001 and 2017, according to data from Idescat. uniform in Barcelona’s various neighbourhoods The proportion of the population living in rented and districts. So, for example, in 2018, rent property in Spain as a whole during that same prices reached their highest levels in Sarrià - period rose from 11.4% to 22.9%, according to Sant Gervasi (1,268.9 euros/month), Les Corts Eurostat. (1,089.5 euros/month) and Eixample (1,038.3 This trend has also coincided with an increase euros/month). Nevertheless, the pace of price in leases and a “slight decline in the number of increases has been levelling off more in these residential property sales”, according to the OHB’s districts than in the city as a whole. Whereas director. In line with the above data, this has rent prices in Barcelona as a whole went up particularly been the case in Barcelona, as can be by 6% from 2017 to 2018, the increase in these seen in Table 2. districts was between 3% and 3.5%, according to the Secretariat for Urban Housing and Territory. It is in the districts with the lowest rents where prices are currently rising the most. According to ANNA VERGÉS data from 2018, the biggest (Metropolitan Housing Observatory) increases occurred in “The pace of growth in rental Ciutat Vella (10.3%), Sant Andreu (8.1%) and Nou prices has been levelling Barris (7.8%). off both in Barcelona and in the metropolitan area as a whole” 21 Barcelona’s average rent Taking into account the accumulated increase price is 929.6 euros a month, between 2014 and 2018, we can also observe that the increase was especially significant in remaining above that of the Ciutat Vella, where rental prices rose by 43% other municipalities in the during that same period. It was followed by Sant metropolitan area (735.10 euros). Martí (38%) and Nou Barris (35.1%). Overall, throughout the city as a whole, The pace of rental price rises has also been Barcelona’s average rent price is 929.6 euros a tempered throughout Catalonia and Spain, as month, remaining above that of the metropolitan corroborated by data from property portals. area's other municipalities (735.10 euros). Even According to Fotocasa, prices rose by 5.1% in so, residence self-containment is higher in 2019 throughout Spain, the smallest growth in Barcelona than it is in all the other metropolitan the last three years. towns and cities. In other words, a greater Anaïs López, the director of Communication proportion of residents in Barcelona who change and Contents at Fotocasa and Habitaclia, dwelling do so in the same city, whether in the explains that the regional communities of same neighbourhood or district or in another Catalonia and Madrid, where rent prices had part of the city. According to data from the OHB risen sharply over the last few years, have from 2017, the rate in Barcelona was 72.8%, started to see a curb in price rises (3.1% compared to 62.5% in the metropolitan area's in Catalonia and 2.3% in Madrid in 2019). other municipalities. Nevertheless, this does not mean that price What Barcelona shares with the metropolitan rises have halted; in fact, 2019 ended with the area's other municipalities is a levelling off of highest rental prices for the last 13 years in the upward trend in rental prices. “The pace of Spain. According to Fotocasa, they amounted to growth in rental prices is being curbed both in €10.18/m2 by the end of 2019. Barcelona and the metropolitan area as a whole, because, since residents can no longer pay more, the market is tending to stabilise”, explains Anna Vergés. TABLE 3. EVOLUTION OF AVERAGE RENTAL PRICES* Increase in Increase Increase Average price prices from the in prices in prices 2018 lowest point* 2016-2017 2017-2018 Barcelona €929.6 per month + 36.4% (2013) + 9.5% + 6% AMB without Barcelona €735.1 per month + 28.3% (2014) + 9.3% + 6.7% Source: Secretariat of Urban Housing and Territory, based on deposits paid to Incasol. * The rent prices were at the lowest minimum level of the series in Barcelona in 2013, after which they started to rise. The minimum rent levels in the other metropolitan municipalities correspond to 2014. THE CURRENT SITUATION IN BARCELONA AND THE STATE A considerable gap between asking price and offer price Despite the reduction in the rate of rent increases, there continues to be a considerable gap between asking price and offer price, as the following chart shows. Whereas the range of rental prices in highest demand is between 600 euros and 800 euros a month (accounting for 35% of the demand), most offers are above 1,000 euros a month (68% of the supply). If we observe the way rental prices have evolved by neighbourhood, we find the more notable increases are in the areas of the city where prices were lower: Ciutat Vella, where they have gone up by 43% over the last 4 years, Sant Martí (up 38%) and Nou Barris (up 35.1%). Anna Vergés, Director of the Barcelona Metropolitan Housing Observatory (O-HB). CHART 1. RELATIONSHIP BETWEEN RENTAL PRICES OFFERED AND DEMANDED (FROM THE SECOND QUARTER OF 2017 TO THE SECOND QUARTER OF 2018) 50% 40% 30% 20% 10% 0% <400 400 < 600 600 < 800 800 < 1,000 1,000 < 1,300 1,300 < 1,700 > 1,700 Demand Supply 23 According to a study from Fotocasa and It is for this reason that many people are Infojobs, tenants in having difficulties finding flats to rent Catalonia and Madrid at the price they are looking for and, at spend close to half the same time, many owners are having their income on rent trouble finding tenants able to pay the amounts they are asking for. Fotocasa’s director of Communication, Anaïs López, recognises that city residents’ rent prices “do not correspond One of the main reasons for this gap with the level of prices currently found between rental price supply and demand in the market”. According to data from is none other than the disparity between Fotocasa, 75% of individuals who rented housing costs and city residents’ income. or attempted to rent a property last year As Table 5 shows, the average rental stated that price was their main obstacle. price has grown twice as much as city residents’ incomes, taking into account An annual study from Fotocasa the gross disposable household income and Infojobs suggests that citizens (RFDB) from 2000 to 2018. Purchase throughout Spain are currently spending prices of both new and second-hand an average of 34% of their salaries on dwellings have also experienced greater their monthly rent payments. In the growth than household income. case of Madrid, residents are spending 51% and in Catalonia, 49%. “These It is in this context that families with low percentages mean citizens have no or moderate incomes have also seen chance of putting money aside for their options limited when it comes to savings at the end of the month and this choosing the location or neighbourhood therefore makes it almost impossible for they wish to live in, as the prices in many them to save up to buy a property in the areas are beyond their financial means. future”, López acknowledges. So, for example, in 2018, a household In the current situation, the people who with an income equivalent to 2.5 times have most difficulties finding a flat to the minimum wage (€2,146 net a month) rent in Barcelona are the ones looking in could rent a dwelling in only 5 of the the lowest price ranges, as that is where 33 municipalities in the Barcelona there is less supply and, at the same metropolitan area, according to the time, higher demand, as shown in Table 4. average price of flats in these locations, without spending more than a third of their income. By contrast, a household with income equivalent to 3.5 times the minimum wage (€3,005 a month) could access a dwelling in 30 of the 33 municipalities in the metropolitan area and in 4 of Barcelona’s districts, under the above criteria. This is causing the continued and increased residential segregation of citizens by neighbourhood, according Anaïs López, Director of Communication to their socio-economic conditions, and and Contents at Fotocasa and Habitaclia. undermines social cohesion. THE CURRENT SITUATION IN BARCELONA AND THE STATE TABLE 4. DAYS FOR WHICH RENTAL OFFERS ARE PUBLISHED, ACCORDING TO THEIR PRICE Days for which the Average price offer is announced offered 2-7 days €772 per month 1-2 months €950 per month More than 5 months €1,116 per month Source: Data prepared by the Barcelona Metropolitan Housing Observatory, based on data provided by Habitaclia. TABLE 5. COMPARATIVE EVOLUTION OF FAMILY INCOME AND HOUSING PRICES 2000-2018 growth Gross disposable +63.4% household income Average rent price +127.7% Average price of newly +147.7% built dwellings Average price of +144.7% second-hand dwellings Source: Data prepared by the Barcelona Metropolitan Housing Observatory, based on data provided by Idescat, Barcelona City Council and the Catalan government. 25 More than 84% of evictions in Barcelona between 2013 and 2017 were rent related The worst example of such inequality and discrimination in access to housing are evictions, most of which are currently due to Other factors to bear in rent arrears. In Spain as a whole, 67.4% of all evictions relate to rent (67.71% in Catalonia), mind that have an impact according to data from the General Council on rent in Barcelona of the Judiciary for 2019. During this period, a total of 54,006 evictions were carried out The director of the OHB, Anna Vergés, also throughout the Spanish State, 12,446 of refers to other key factors for planning public which (23%) were in Catalonia, making it the housing policies in the city during the coming regional community with the highest number of years, which relate to the profiles of both evictions. potential tenants and landlords. In Barcelona’s case, the Metropolitan Housing In the first place, she highlights the Observatory states that the percentage of importance of the city’s demographic evictions for rent-related reasons reached changes. She explains that the size of 84.1% between 2013 and 2017. The number Barcelona’s population “has stabilised” at of evictions in the city remains high, although around 1.6 million residents, although “the there is now a downward trend: in 2017, there number of foreign nationals has grown”. The were 2,519, 9% fewer than in 2016. overall number of foreign-national residents comes to 392,743, representing 24.2% of the total. Diverse profiles are included in this group: from individuals immigrating to our shores from poor countries in search of better living conditions to others moving here from fellow European states, attracted to Barcelona’s quality of life or professional- Demographic changes development possibilities, among other things. and fragmentation of Add to that the ageing of the population. ownership, two factors According to data from the Observatory, the percentage of young people has dropped by that have to be taken over 5 points since 1996 (from 20.4% to 15%), into account for planning whereas the number of older people (over public housing policies the age of 65) now represents 21.54% of the population. THE CURRENT SITUATION IN BARCELONA AND THE STATE Second, she refers to the profiles of the owners of dwellings found in Barcelona’s rental or sales market. Throughout Barcelona there are calculated to be 774,190 dwellings belonging respectively to 512,178 owners, 97.1% of whom are individuals. The average number of flats per persons is 1.5. As for the specific case of rental properties, these represent a total of 233,291 flats, a third of the city’s main dwellings. The profile of the owners of the rental flats is distributed as follows. Of the total number of rental flats, 68.8% are owned by individuals, whereas 24.3% are owned by corporations (financial, property sector and so on) and 5.2% by the Authorities, whereas the remaining 1.6% belong to non-profit or religious organisations. In sum, the structure of the ownership of the dwellings — both flats and the entire remaining stock — “is strongly fragmented and mostly in the hands of individuals”, states Anna Vergés. This is an especially significant factor when it comes to assessing policies or regulations that may be more effective in guaranteeing citizen accessibility to housing. As well as impacting on large property owners, they also need to take account of this strongly fragmented ownership and be aimed at the individual owners who make up a large part of the rental property on offer. As well as impacting on large property owners, they also need to take account of this strongly fragmented ownership and be aimed at the individual owners who make up a large part of the rental property on offer. 27 Rental prices on property portals, up to 57% higher than in the official statistics As regards the data on rental prices provided by data and the property portals to their respective property portals, it should be borne in mind that methodologies, above all with regard to the they are substantially higher (up to 57%) than the sample of dwellings analysed. She warns that the official statistics. This was underscored when percentage of owners paying deposits to official Spain’s central government published its own price bodies —where the Ministry's data are based — “is statistics for the first time, in 2019, based on the small” in many regional communities, except in the finance records of the regional communities. case of Catalonia. “It is notable that communities such as Catalonia have three times as many According to a study from the Ministry of Public dwellings analysed as in the regional community Works, the average rental price in Spain is 8.1 of Madrid, when the number of rent transactions in euros per m2, whereas Fotocasa and Idealista the latter is much greater than in the former”. state that it is 8.3 euros/m2 (2.47% more) and 10.4 euros/m2 (28.4% more) respectively. The As for property portals, there are also frequent differences in some provinces between the prices demands from social movements relating to stated by Foment and the property portals are preventing the publication of fraudulent offers, much more pronounced and reach a maximum increasing transparency and improving their of 57% in the case of the Balearic Islands. In roles as intermediaries. Regarding this, López Barcelona province, while the official data state maintains that Fotocasa is already working on the that the rental price is 9.6 euros/ m2, Fotocasa issue: “A team of experts in moderation and fraud puts it at 14.1 euros/m2 (46.88% more) and are working exclusively to ensure the maximum Idealista at 14.6 euros/m2 (52.08% more). security of each and every advert”. One of Fotocasa’s main tools for preventing online fraud The Metropolitan Housing Observatory has also are its personal, non-transferable verification corroborated this trend in the case of Barcelona. codes, which are sent to the advertisers by Data from Incasòl stated that the average rental telephone and which the latter have to include in price in the city was 929.6 euros a month in the offers they publish on the portal. According 2018, compared to the 1,452 euros stated by to López, this enables them to guarantee that the the Habitaclia property portal. telephone number the property will be published Anaïs López, the director of Communications and with belongs to the advertiser. “Fotocasa does Contents at Fotocasa and Habitaclia, attributes not allow the publication of illegal, harmful and this gap between the prices from the official fraudulent adverts”, she concludes. THE CURRENT SITUATION IN BARCELONA AND THE STATE 04 The rent debate at the institutional level Rent increases, as explained above, as well as pressure from social movements in defence of the right to housing, have brought to the fore the debate on price regulation in public institutions, especially since 2018. This section will first examine the debate that has come about at the State level and subsequently in Catalonia. 29 The debate on rental price regulation4 at the .1 State level The debate on rental price regulation has It was in that context that PSOE and Podemos gone through various phases since it was first reached a budgetary agreement in October considered after the vote of no-confidence 2018, which also incorporated proposals on against the PP political party, which brought the housing. As for rental price regulation, Marina PSOE political party to the State government in Estévez, an Eldiario.es journalist specialising June 2018. Below, we will take a brief look at the in housing and tax, points out that the various stages this debate has been through agreement stipulated that local authorities since that time to identify its most controversial or regional communities could create a rent points, understand the current situation and reference index which would enable the examine future prospects. regulation and restriction of rental price rises in urban areas with tight markets, among 1st stage: rental price other aspects. Other notable points included regulation, in the PSOE- the lengthening of lease terms from 3 years to 5 years for individuals, and from 5 years to 7 Podemos budget agreement years for corporations, with extensions of at for 2019 least 3 years in both cases. This reversed the shortening leases had undergone under the Following the no-confidence vote, the debate Urban Leases Act (LAU) of 2013. on rental price regulation began towards the end of 2018, at the same time as the debate on the State’s general budgets which the new executive under PSOE wished to approve for 2019. THE INSTITUTIONAL DEBATE 2nd stage: the PSOE government's approval of a first decree on rentals without price regulation, outside the budgets Estévez remembers that, although the PSOE initially agreed to include this second point in the budgetary agreement with Podemos, the Ministry of Public Works later on “flatly refused to apply it”, causing a “considerable controversy” between the two political parties. So much so that the PSOE government approved a decree in December 2018 —outside the budget— that amended rent regulation, but without including the possibility of limiting rental prices. It did maintain, however, the lengthened duration of leases. Which explains why, when the decree was put to the vote at the Spanish Parliament for validation, Podemos voted against it. The rejection by the latter and other political parties, for different reasons, stopped the decree from going ahead. Maria Estévez, an Eldiario. es journalist, during her talk at the Rent Regulation Conference held at ICAB on 18 November 2019. 31 3rd stage: given the failure of the first decree, a second was presented which would regulate the price increases within a lease but not between leases Nor was there any possibility of success for the This is what finally tipped the scales for support State’s general budgets, which the Spanish from Podemos, according to the Eldiario.es government put to the vote in Parliament in journalist. The prospect of new general elections February 2019. After the budgets had been around the corner and pressure from large owners rejected, the PSOE political party saw time was in defence of their interests should also be taken running out for their term of office and opted into account. Hence Podemos’s acceptance of to prepare decrees which would at least enable this decree “as the lesser evil”, although it did not some of the most important points contained incorporate price regulation, explains Estévez. in the budgets to go ahead, including housing- The PP political party brought an appeal against related measures. the constitutionality of its contents in May 2019, It was in this scenario, in March 2019 that the questioning the “extraordinary situation and Spanish government presented its second urgent need” that the Spanish government proposed decree on rentals, this time having had been justifying its measures with. The reached an agreement beforehand with Constitutional Court made its ruling in January Podemos, to ensure its approval. During 2020 and, while it partly accepted the PP’s the negotiation process, Podemos failed to appeal against the decree, it did not refute its convince PSOE to accept the measure initially most fundamental parts. The State decree's main included in the budgetary agreement enabling measures on rentals are briefly examined below. local authorities and regional communities to regulate rental prices in areas with tight markets, although it did agree to another concession: “The decree ends up limiting the rise of prices within the same leases to the CPI”, asserts Estévez. It should be noted that the LAU of 2013 made this level of price updating dependent on an agreement between landlord and tenant. THE INSTITUTIONAL DEBATE MAIN CONTENTS OF THE STATE DECREE ON RENTALS OF MARCH 2019 The main measures of the State decree on rentals approved in March 2019 (7/2019) notably include the following: 1. It lengthens the minimum term of leases 7. It provides for the Authority’s right of from 3 years to 5 years for individuals, and pre-emption, so that it has priority in from 5 years to 7 years for corporations, with buying flats that are for sale and can extensions of at least 3 years in both cases. allocate them to this purpose. 2. It links any rent increases within the lifetime 8. It commits to public-private collaboration of a lease to the CPI. in promoting affordable housing. 3. It contains a commitment to create a State One of the channels proposed by the reference index system for housing rental government is granting the use of public prices within a period of 8 months. Given land to companies or cooperatives to the hung parliament resulting from the build such housing. April 2019 elections and the holding of new 9. The decree clearly distinguishes elections in November of the same year, that between tourist-apartment regulation commitment could not be met. However, and residential-housing regulation. It by the end of June 2020, the Spanish establishes that tourist accommodation government finally presented this system. will be regulated, not by the Urban Leases 4. It strengthens protection for people who Act, but by the sector’s regulations that have been or are at risk of being evicted apply in each case and are marketed from their homes: the courts have to assess through tourist-offer channels. In addition, whether the individuals in the process of it establishes that a residents’ association being evicted are in a vulnerable situation can limit or determine the activity of tourist and, if they are, notify the social services of apartments in their block of flats, where this. If individuals in the process of being three fifths of members so decide. evicted are in a vulnerable situation and the 10. It puts an end to the requirement under flat they live in is owned by a corporation the LAU of 2013 for leases to be registered (for example, a bank), the decree postpones with the Land Registry to be valid. Under the eviction for at least 3 months. In the former requirement, any investment addition, the decree makes it illegal to carry fund that bought a block of flats with sitting out open evictions, where residents are not tenants could easily force them out if their given any prior notice of their date or time. leases had not been registered. 5. It enables the authorities to expand their 11. Some of the initial barriers to accessing social and affordable housing stock. It rental housing have been removed, by provides for the so-called “20,000 Plan”, lowering the cost involved in drawing to start building this number of affordable up formal leases. For example, it limits rental homes during this government’s the amount that has to be put down as term of office. security, a deposit or any other additional 6. It proposes eliminating administrative and guarantee to three months’ rent. The financial barriers so local authorities can expenses for drawing up and managing build social and protected housing. a lease will also be borne by the owners if they are corporations. 33 4th stage: PSOE and Podemos government agreement of December 2019 once again incorporates the proposal for rental price regulation Besides the implementation of this decree, we should note the new scenario that opened up in 2020 when the new Spanish government was established, comprised of a coalition between PSOE and Unidas Podemos. The government agreement between the two political parties provides that local authorities and regional communities can “regulate abusive rises in rental prices in areas previously declared to be tight, while preventing possible effects of a shrinking rental housing supply”, based on a benchmark state-index system for housing rental prices. The agreement also provides that regional communities can prepare their own index under the same methodology and takes account of “the advances” made by communities which, like Catalonia, already have one. It also establishes that local authorities themselves can declare them “temporarily and exceptionally” to be tight market areas. Even so, towards the start of 2021, this remains one of the main points of friction between the various political party groups for pushing ahead with the State's new legislation on housing. Representatives of the PSOE in the government this year went back on the aim expressed in the coalition-government’s agreement at the start of its term of office. 5th stage: Catalonia marks a watershed with a pioneering piece of legislation The fifth stage was entered towards the end of government between the PSOE and Podemos 2020, with the passing of an Act in Catalonia political parties. By contrast, other political on rental price regulation, a pioneering piece of sectors wish to return to the past and have legislation in the State. The Catalan Parliament brought an appeal against the regulations passed Act 11/2020, on urgent measures before the Constitutional Court, as they for containing rent in residential leases, 9 believe, among other things, that the Catalan September, following the proposal made by the Act violates State jurisdiction. That Court Tenants’ Union, with support from the various accepted the appeal brought by the Partido social movements in safeguarding the right to Popular (PP) on those grounds, at the start of housing. 2021. In fact, the PP and Ciutadans (Cs) had Catalonia was becoming, then, the first regional already requested a report from the Council community in the State to have legislation of for Statutory Guarantees of Catalonia on the this kind. Given this precedent, during these level of conformity of the proposed rental price times, there are several political forces that are regulation to the jurisdiction of the Catalan keen to extend these regulations to the rest government and, according to that body, it of the State, to put into effect what is already could encroach on the State’s jurisdiction. part of the agreement reached by the coalition THE INSTITUTIONAL DEBATE It is therefore difficult at present to predict the We summarise below the main points of the Act effect the Act will have in Catalonia let alone the on rental price regulation in Catalonia. possibility of exporting it to the rest of the State. MAIN CONTENTS OF THE ACT ON RENTAL PRICE REGULATION IN CATALONIA •• Rental price regulation will apply to the areas •• The Act establishes a disciplinary system to that are considered tight markets, which ensure compliance. are found to be especially at risk of lacking •• It also provides pioneering recognition of sufficient affordable rental housing to tenants’ organisations as mediators in possible guarantee this right to all city residents. Under disputes between owners and tenants. the criteria established by the Act for these purposes, the regulation can be applied to Some exceptions to the Act's application some sixty Catalan municipalities. •• Rental prices may rise, with justification •• The Catalan government is responsible for and limits, above those of previous leases in declaring an area as a tight market. But specific cases; for example, owing to reno- Barcelona City Council and the Barcelona vation and improvement works in dwellings. Metropolitan Area (AMB) are also empowered Prices may also rise where the previous tenant to do this directly, on their own initiative or at was a family relation of the owner. the request of one of the municipalities within •• For the first three years that the Act is in the area. Tight-market declarations may remain force, the regulation will not apply to dwellings valid for a maximum period of five years. that are newly built or have undergone major •• As a general rule, the Act establishes that a renovation work. previously let flat cannot be rented out for more •• The Act does not cover dwellings subject to than the price of the previous lease, where the special rent-determination systems, including latter was signed within the last five years. rent-control leases or leases signed before 1 •• If the flat had previously had a price above January 1995, or officially protected housing, the average for the area in which it is located, homes included in the public networks of social- the price of the new lease cannot be above insertion housing or mediation for social rent or the maximum value established in the the Rental Housing Fund for social policies. Flats Catalan government’s rent reference index. that provide assistance and with mandatory This can lead to, mostly moderate, price social rent are also excluded from the Act. reductions in various cases where prices are •• Nor does the Act apply in specific cases, for currently above the average. example, if the landlords are part of a household •• Generally speaking, if a flat is let out for the first unit whose income is under 2.5 times the time, its price will have to be, as a maximum, Income Sufficiency Indicator for Catalonia the one stated in the reference index. (IRSC), including income from the rent. 35 The opinions of experts and social movements on the latest measures adopted by the State government on rent Social movements see the State decree of March 2019 as a lost opportunity for regulating rental prices throughout Spain. So long as there is no such regulation, tenants will be defenceless against owners, according to both the Director of the DESC Observatory, JAIME PALOMERA (Tenants’ Union) and Irene Escorihuela, and the spokesperson for the IRENE ESCORIHUELA (DESC Observatory) Tenants’ Union, Jaime Palomera. Note here that Rental prices for new leases although the Act on rental price regulation has need to be regulated and tax been approved in Catalonia, doubts remain over privileges for REITs ended its constitutionality, according to some political and social sectors. This is creating uncertainty over its future implementation in Catalonia. When a lease ends, the landlord is not only entitled to She is more critical of the 20,000 Plan’s decide on whether or not to renew it with the same proposal. While she believes building more tenant but also to set a new price “without any kind of flats may be necessary to a certain extent, it restriction”, maintains Escorihuela. Here she explains should not be considered a top priority. She that in countries such as Germany the price of a new is of the view that we ought to opt mainly lease must not be more than 10% of the previous one for reclaiming as many vacant dwellings and calls for Spain to adopt a similar system. as possible for social and affordable The spokesperson for the Tenants’ Union, Jaime rental housing which hail from mortgage Palomera, also bemoans the fact that the foreclosures or rent-default evictions. In measures taken so far by the State have relegated Delgado’s view, this option not only reduces the issue of REITs, which remain exempt from the need for building new flats — and their corporate tax. He believes that putting an end to subsequent environmental impact— but is tax privileges would help to eliminate speculative also faster and more effective in responding practices in the property market. to the housing-emergency situation, as The spokesperson for the PAH in Barcelona, planning and building new dwellings are more Lucía Delgado, emphasises the impact that social long-term measures. movements had on ensuring that the Decree of As for the government agreement between March 2019 “clearly” banned open evictions and PSOE and Podemos, the spokesperson for expresses her satisfaction at the results of the new the PAH regards it as a “collection of good regulations. It should be noted that “there had been intentions”, but that the “regulatory and a sharp rise in this modus operandi” since 2018. budgetary specifications” of the various According to the PAH, while there were only 7 open measures it provides for need to be known. evictions in Barcelona in 2017, there were as many It was for the very purpose of goading the as 55 in 2018 and 32 during the first quarter alone Spanish government into action that the PAH in 2019, before the decree was passed. By contrast, presented it, around the start of 2020, with a there has been a very significant drop in the number proposal of shock measures, which included of cases since the approval of the decree. halting evictions involving any family in a THE INSTITUTIONAL DEBATE LUCIA DELGADO (PAH Barcelona) confirms a drop in eviction numbers but notes the lack While upbeat about the creation of the of measures for bringing State index, Burón criticises the fact vacant flats into the social that no measures are being suggested for optimising the functions that a rental housing market reference price index could have in the field of tax policies and subsidies (for awarding subsidies or applying exemptions or reductions in taxes for owners that put their rent prices below vulnerable situation. On that matter, the reference rates). “Using taxation we should point out that at the start of to stimulate a drop in rent prices is not March 2020, the Spanish government controversial, although up to now there announced that it would carry out have been no tax incentives other than a moratorium on mortgage-related local ones”, he maintains. evictions for 4 years and include a ban in the LAU on evictions for defaulting The State decree on rentals of March on rent payments in tight market areas 2019 enables local authorities to offer and in cases where investment funds up to a 95% deduction on the property are speculating with housing prices and tax (IBI) of owners who allocate their putting this social right at risk. dwellings to social and affordable housing and to apply that tax at a The Manager for Housing and higher rate to owners who leave their Renovation at Barcelona City Council flats vacant. Burón considers these and an expert on the issue, Javier to be positive measures, but adds the Burón, believes the drafting of the following: “Local taxes such as the IBI coalition government’s agreement “is have little bearing on taxation in general, open and not absolutely clear in what it the key is in corporation tax, VAT and will lead to”. Even so, he welcomes the income tax, which are basically state fact that the agreement establishes a taxes”. common, objective methodology for preparing rent reference indexes for the various regional communities and local authorities, as up to now JAVIER BURÓN (Barcelona City Council) there had only been measurement “Using taxation to stimulate systems limited to specific territorial a drop in rental prices is not areas. So far, besides Catalonia, the controversial, although up to regional communities of Valencia now there have been no tax and the Basque country have rent incentives other than those reference indexes or similar systems. corresponding to local taxes” 37 companies or cooperatives for building affordable housing, unless measures are taken to prevent their privatisation in the long-term. Once this period of half a century has passed, the dwellings and land become public property once again, although Estévez warns that, depending on the government’s political colour, it could opt to sell them if no measures are taken in advance to protect them in perpetuity. As for the possibility of rental price Javier Burón, the Manager for Housing and Renovation at regulation during this government’s term Barcelona City Council. of office, Estévez expressed her scepticism during the conference on rent regulation held before the coalition government For her part, the Director of was formed. She highlighted how the Communication and Contents at development of housing policies would be Fotocasa and Habitaclia, Anaïs López, determined by the Ministry of Economy and insists on the following: “We have not the delegated commission for Economic noted any impact since the decree on Affairs. This responsibility once again falls rentals came into force”. She maintains to Nadia Calviño, who followed the “dogmas that property portals have followed the of economic austerity” during the last term same trend in rental offers as the one of office and did not facilitate rental price recorded before the decree came into regulation. In fact, the Minister for Economy force, in offers from individuals and had already expressed her opposition professionals alike. to rental price regulation on 23 January 2020, coinciding with the publication of a report from the Bank of Spain against ANAÏS LÓPEZ this measure, despite its inclusion in the (Fotocasa and Habitaclia) coalition government’s agreement. “We have not noted any impact since the Nevertheless, other members of the decree on rentals Spanish government subsequently came into force” reaffirmed their aim to comply with what had been agreed to. This mandate, then, will be key to checking whether and Estévez is critical of the goals of the how effectively rental price regulation 20,000 Plan for building this number of is implemented in Spain, framed by a dwellings in 4 years, at a rate of 5,000 a strong controversy between political, year. She believes they are “unambitious” economic and social players. and remembers that, in Barcelona alone, close to 4,600 affordable rental dwellings started to be built during the last MARINA ESTÉVEZ, a journalist municipal term of office. specialising in housing: In addition, she warns of the risks the affordable- of granting the use of public land, housing goals normally for periods of 50 years, to “are unambitious” THE INSTITUTIONAL DEBATE 4.T2he debate on rental price regulation in Catalonia Besides the debates on the issue being held at the State level, the possibility of the regional government directly regulating rental prices has been raised over the last few years in JUDITH GIFREU (Catalan Housing Agency) Catalonia; that possibility was realised in the regulations The rent reference recently passed in Parliament index “is a tool for at the instigation of the Tenants’ Union. bringing transparency According to the Director of to the market” the Catalan Housing Agency (AHC), Judith Gifreu, the Catalan government “has recently shown itself beyond doubt to be pro-active regarding the market and others on this issue”, as well as keen to act for regarding it as insufficient for as directly as possible on rent prices. guaranteeing the affordability of rental The Catalan government presented prices. Executive Decree 9/2019 in May 2019, on emergency measures for containing The mechanism proposed by the rent prices in residential leases, which, Decree for regulating rental prices is according to Gifreu, was aimed at based on the Catalan reference rent- “helping to contain prices without price index. This index calculates harming the viability of a market with the average rent in a certain area, little rental housing supply”. by establishing a range between the highest and lowest rents, based on Even so, the decree ultimately failed, Incasòl’s register of deposits. It is based for want of parliamentary support, as on objective data from over 300,000 all the opposition political party groups real lease deposits made with Incasòl opposed it for different reasons: some over the last 3 years. for considering it too interventionist 39 Note that the sole function of the Index is It was for the very purpose of helping to not that of acting as a basis for a price- contain rental prices that the Catalan regulation system. In fact, when the government presented Executive index began to be promoted in Catalonia Decree 9/2019. The proposed regulation in 2015, it had not been created for was based on this same reference that purpose, but rather to provide, in index, establishing that the rental a transparent way, information on the prices could not rise above market market prices of leases, so that both rates by more than 10%. This could owners and tenants would have the same be temporarily applied in cities or information. Judith Gifreu emphasises neighbourhoods with tight markets. this function of the Index: “It’s a tool for The Director of the DESC Observatory, bringing transparency to the market, a Irene Escorihuela, points out that the last key aspect if we want prices to behave few years have seen “a very substantial in a way that brings supply and demand change” compared to the situation in into line with each other and make room 2015, when the possibility of regulating for every type of person and family rental prices was not even on the political looking for rental housing”. agenda. Nevertheless, both the DESC Along the same lines, the Manager for Observatory and social movements Housing and Renovation at Barcelona championing the right to housing were City Council, Javier Burón, explains very critical of the contents of the decree as follows: “According to the classic presented by the Catalan government, economic theory, if the two parties to which was why it had to carry out intense a transaction are well informed, the lobbying and negotiations with the supply and demand will intersect at the institutions to ensure the Act on rental average market price, not well above or price regulation would be passed in the well below”. In any case, he warns that, Catalan Parliament. while it is not to be underestimated, the Since the start of the debate on informational function of the index has “a limited capacity” for reducing prices in a tight market situation”. Jaime Palomera, the spokesperson for the Tenants’ Union during the Rent Regulation Conference of 18 November 2019. THE INSTITUTIONAL DEBATE considered, overall, to be satisfactory JAIME PALOMERA (Tenants’ Union) and a great victory for tenants. the reference index “should The Manager for Housing and be based on data from diverse Renovation at Barcelona City Council, sources [...], for example, Javier Burón, agrees with the need taking account of disposable expressed by social movements household income” to adapt rental prices to citizens’ incomes. However, he is not in favour of incorporating socio-economic and income criteria into the rent reference this issue, social movements have index but rather of “taking these into questioned the mechanism for preparing account when determining whether or the reference rent-price index as the not a tight market situation is occurring basis for a regulation system. In the view in an area”. In other words, the areas of the spokesperson for the Tenants’ with a considerable gap between the Union, Jaime Palomera, the Catalan average income of their residents government’s reference index “does and average rental prices could be not seek to cover the needs of citizens considered tight markets and the price- or the right to housing”. He believes regulation system could be applied the index should be based on “data there. from diverse sources, not just from the public register of rent deposits, and By contrast, he rules out taking socio- on the average property-tax register economic and income criteria into value, and to make the necessary account when constructing the rent social weighting that would determine reference index owing to the need to its accessibility for local residents, combine price affordability for citizens for example, by taking account of the with profitability for owners. He warns available household income or the that making significant reductions unemployment index of residents of a to profitability for owners could be certain district”. For the Union, an index counter-productive and cause a drop with these features should also have to in the supply of rental housing in the be of mandatory compliance in the areas city. He insists that price-regulation with problems of residential exclusion measures will need considerable “fine and gentrification and “extendible to the tuning” if they are to achieve their entire metropolitan region”. desired effects. Even so, it was during the process Another controversial aspect to the enabling the enactment of the Bill on rental price JAVIER BURÓN (Barcelona City Council) regulation in the Catalan believes socio-economic Parliament in September 2020, thanks to the impetus and income criteria should from the Tenants’ Union, that be taken into account when the social movements had determining whether or not to show flexibility in some of their positions on this and an area is a tight market other issues, to bring about an agreement which they 41 Maria Sisternas warns how the Administration should use rent regulation to prevent a repetition of the same mistakes made when setting the purchase prices of officially protected housing: “For a long time here, officially protected flats in the general system were at 10% to 15% below the market price; when market prices dropped Catalan government’s rent reference spectacularly due to the crisis, the index is that it cannot be constructed general housing system stopped being by taking into account the deposits taken into account”. Here she calls corresponding to all the rental dwellings for the public sector to be capable of in an area, but rather only those “anticipating property cycles”. corresponding to the latest leases. The The Tenants’ Union also condemns spokesperson for the Tenants’ Union, the opaque way in which this index is Jaime Palomera, warns here how it is updated and believes it is essential for precisely these latter leases that are it to be transparent. They believe the the most expensive. index should be produced through a Which is why both process of agreement and Palomera (Tenants’ IRENE ESCORIHUELA consensus between Union) and Irene (DESC Observatory) the authorities with Escorihuela (DESC jurisdiction over Observatory) the Catalan housing (Catalan bemoan the fact government’s government, local that, with this index “is authorities etc.,) index, the Catalan legitimising the the social and government “is economic players bringing legitimacy prices of the involved (property to the prices of the current bubble” chambers, professional current bubble”. associations and Using an index, then, so on) and social that is based on leases from the last few organisations and years may achieve the opposite of the movements championing the right to desired effect: that in an economic cycle housing, such as the Tenants’ Union of price contraction, the index continues itself and the Federation of Residents’ to legitimise their rise. This is how Jaime Associations. Social movements are Palomera puts its, when he states how, at generally of the view that the Catalan present, several vulture funds are using government should have taken more the Catalan government’s reference account of them throughout the price- index to justify hikes in prices to residents regulation decree’s drafting process, defended by the Tenants’ Union. which ultimately failed for want of sufficient consensus. On this subject, the urban planner By contrast, the Director of the Catalan THE INSTITUTIONAL DEBATE Housing Agency defends the and tenants. soundness of the data that Burón believes Catalonia is the the reference index is based regional community that is “in on. “From the point of view the best position” as regards of its reliability, the index is the availability of data on the much sounder than other tools rental market, based on which launched all around Europe, as a price-regulation system it is based on real data with a would be coordinated. “It is the very wide numerical, time and community that first approved geographic scope”, explains the index and the one which Gifreu, who believes some has been using it from the start, European initiatives “are based not just for its statistics but also on much less reliable surveys for making housing policies”, and data”. in reference to the Catalan Javier Burón also shares government’s tax policies for the view that the database rewarding those who put rental on Catalan rental prices is prices below this rate. “better” than its equivalent in Nevertheless, Burón believes countries such as Germany the Catalan rent reference index and France, where rental still has room for improvement. prices are now regulated. Here he explains that the He points out that Catalonia various authorities taking part has “real data on almost all in the Metropolitan Housing the rentals in the market”, Observatory use this space because, as most leases are “as an area for reflection and mediated by a professional, technical improvement” of this the corresponding deposit Marco Aparicio, who was the index. Here he explains that Chair of the Desc Observatory with Incasòl is guaranteed. By work has been carried out to during the Rent Regulation contrast, the rent reference Conference held at the ICAB in ensure the registration forms November 2019. index in Germany is based on of the deposits with Incasòl a particular sample of owners collect more data on each dwelling, to have more accurate knowledge of the rental market, which could be taken into account for adjusting the rent JUDITH GIFREU reference index. These are (Catalan Housing Agency) “From the point of view of reliability, the index is JAVIER BURÓN (Barcelona City Council) sounder than other tools “Catalonia is the launched across Europe” regional community ‘best equipped’ to coordinate a broader price-regulation system” 43 data on the category of the dwelling, its location, its height, whether or not it has been renovated, whether or not it has received subsidies and so on. In his opinion, this will enable the progressive improvement of the index in the future. Besides the rent reference index, social movements are also questioning other Lucía Delgado, the Barcelona PAH’s aspects of the Catalan government's spokesperson during her talk at the Housing decree on rentals of May 2019. Another and Renovation Forum (FHAR). of the main criticisms levelled against it has to do with the exceptions where the limitation thresholds apply. “It has a host of exceptions”, remarks Lucía Delgado from the Barcelona PAH, describing the fact that the Catalan government’s decree as a “loophole act”. decree did not provide any According to the assessment made disciplinary mechanisms for cases of by the DESC Observatory, the decree non-compliance. established so many exceptions to It should be added here that, in cases rental price regulation that it could where it was possible to limit rental only apply to leases for second-hand prices, the decree put the onus on dwellings that had previously had a tenants to detect possible breaches. price below the one established in For social movements, the Authority the index. Exempted from the rent should take formal action in response regulation are leases for dwellings to breaches and not make tenants that are new or which have been responsible for having to report wholly renovated (in such cases rental them, as they are the weaker party prices could be raised up to 20% to the lease agreement and can be above the index); and dwellings with pressured into silence. special features (areas with a garden, swimming pool and exceptional views etc., where the price could be 15% above the index). Other leases also excluded from the regulation are those for flats LUCÍA DELGADO (Barcelona PAH): whose previous prices were above this threshold or with surface areas of believes that the over 150 m2. Catalan government’s The Tenants’ Union is critical of the rental decree had “a host of exceptions” and describes it as a “loophole act” According to the DESC Observatory, the experiences of other cities reveal the inefficiency of this mechanism and they mention the example of Paris, Different positions on whether or not where tenants, in most cases, the Catalan government has the juris- were too intimidated to report diction to regulate rent prices anything. In the context of Spain, where the minimum term of a Political groups such as Catalunya en Comú lease is 5 years, it is reasonable Podem and CUP opposed the decree for reasons to think that tenants will be similar to those of social movements. The other somewhat reluctant to report a political party groups, with the exception of landlord on whom, once this period those belonging to the Catalan executive (Junts has passed, the renewal of their per Catalunya and ERC), also voted against the lease will depend. decree when it was put to the vote in the Catalan Another weak point in the decree, Parliament in June 2019, for different reasons. according to the Tenants’ Union, It should be noted that, before it was voted on in is that it did not provide for any Parliament, the Council for Statutory Guarantees disciplinary mechanisms for issued an opposing — though not binding — report owners who violated the price on Decree 9/2019. According to the Council for limits. It only established that Statutory Guarantees, jurisdiction here falls to the tenants who brought a claim, State and the Catalan government’s decree violated whether through legal channels the Catalan Statute and the Spanish Constitution. or by mediation, could recover the difference between what they had It was precisely this issue of jurisdiction that was paid and the legal limit. one of the main reasons for the PSC political party group's opposition to the Catalan government’s decree. The PP and Cs political party groups also opposed it for the same reason and because they considered it counter-productive to intervene in the private rental market. The Catalan government argued that it had jurisdiction over rent regulation. The Director of the Catalan Housing Agency., Judith Gifreu, has the following to say on the matter: “We believe that, in accordance with the statutory mandate, which is a constitutional mandate and which states that jurisdiction in housing policy falls exclusively to the Catalan government, we must be able to have the possibility of approving rules that enable us to have an effect on the behaviour of our country’s rental market”. The Catalan government relied on the Catalan Civil Code to present this decree. 45 IRENE ESCORIHUELA (DESC Observatory) “I’m strongly in favour of attempting it in Catalonia, but I believe the solution depends more on the Spanish Parliament” This was a ruling on the Catalan regulation of the legal system for residential property sales, which the CC considered to be in On the issue of jurisdiction, the Director of keeping with the Constitution. In this case, the DESC Observatory, Irene Escorihuela, the Court concluded there was nothing points out that the Catalan government itself contrary to market unity about a private refused to accept such jurisdiction, when player being able to choose between two called on to do so by social movements legal systems: the Catalan Civil Code and a few years ago, on the basis that it was the Spanish State’s general law on sales. entitled to launch rental price regulation, “If it said all this about the Catalan civil law under the Catalan Civil Code. Finally, it on sales, it is highly unlikely it will not take changed its mind and proposed this first the same point of view on rentals, which is decree, which never got off the ground. In ultimately a more reversible transaction”, he the current political situation, where Vox has remarks. 52 members in the Spanish Parliament and For the reasons expressed above, doubts can bring appeals for unconstitutionality (a were raised regarding the constitutionality minimum of 50 members of parliament are of the Act on rent regulation recently required), Escorihuela thinks it likely that an approved by the Catalan Parliament in appeal for unconstitutionality will be lodged September 2020. The course the Act follows in response to any possible Catalan rent will determine whether it is legally possible regulation. Hence her following conclusion: to implement a Catalan act on this matter. “We have to do our utmost, attempt it on The new regulations establish that new all fronts; I’m strongly in favour of Catalonia leases may not have prices above those trying to do this, but I believe the solution established by the reference index. As for depends more on the Spanish Parliament”. renting a dwelling already let out in the The Manager for Housing and Renovation five years before the Act came into force, at Barcelona City Council, Javier Burón, the price of the new lease cannot be is more optimistic about the possibility higher than that of the previous lease, in of regulating rental prices through the other words, it will be frozen. The Act will Catalan government. In his view “the path apply in the city’s tight-market areas with to Catalan regulation for tenants has over 20,000 residents. never been so open”, following a recent ruling by the Spanish Constitutional Court (Ruling 132/2019, of 13 November), on housing regulation in Catalonia. THE INSTITUTIONAL DEBATE 05 Rent regulation within the framework of a global housing policy strategy 47 The social and political debate on Here the urban planner Maria Sisternas rent regulation examined in the suggests “changing the public-budgetary sections above is part and parcel investment criteria” of the last few years to of a broader dialogue on a global promote the expansion of the public housing housing policy strategy. stock. While investments in public space and facilities had been prioritised over the last It is not the aim of this publication, few years, she believes the time has come to which focuses on the issue of allocate those funds mainly to housing. regulation, to go over the large range of housing policies that may For her part, the Director of Communication be implemented to ensure this and Contents at Fotocasa and Habitaclia, right for citizens. However, we will Anaïs López, agrees on the need to make a be examining a few contributions “firm and long-term commitment to creating and reflections on the policies that a rental housing stock”. According to her, should accompany price regulation “looking for synergies with the private sector to ensure this measure can help to ought to be a preferred option” with this effectively guarantee the right to objective in mind. housing. The percentage of social and affordable These measures notably include housing throughout the Spanish State expanding the social and affordable has remained below 2% for the last rental housing stock. Price decade. The PSOE-Unidas Podemos regulation would affect the private coalition government’s agreement, market, but at the same time the signed in December 2019, provides for public and social housing supply will measures to reverse this situation. So, have to increase to adequately meet for example, it reinforces the obligations the needs of citizens. of large property owners to offer social rentals to people in vulnerable situations. Their aim is to mobilise vacant flats belonging to large property owners, through penalties or tax incentives, for allocation to affordable rental housing. MARIA SISTERNAS (urban planner) These measures aim to extend to the opts for “changing whole State the provisions already found the public budgetary- in Catalan Act 24/2015 and which in fact investment criteria have already been incorporated into the and prioritising agreement at the instigation of social movements themselves, which were the housing over public driving force behind the approval of these space and facilities regulations in Parliament. On the other hand, the government agreement includes the commitment to steadily expand the housing budget and make land available for expanding the social and affordable public housing stock, through public-private collaboration. RENT REGULATION IN CATALONIA Over a decade of paralysis in expanding the social and affordable housing stock In the case of Catalonia, we should note It was when Artur Mas (CiU) was the that the Catalan Housing Act of 2007, president of the Catalan government a pioneering piece of legislation in the that several of the targets set by these State, set out the following target: that regulations were lowered, under the 15% of the entire housing stock would be “Omnibus” Act of 2011, which reduced social and affordable by 2027. However, the reserves of land for protected as criticised by social movements, these housing and deactivated the temporary targets have been systematically failing expropriation of vacant dwellings for to achieve this landmark. The percentage social rentals, among other aspects. even today remains stuck at 2%. It should also be noted that the strategic To achieve the target of 15%, we residential areas project (ARE) was would have to have 440,000 social present that same year (2007), reserving and affordable dwellings available in land to boost the building of protected Catalonia (out of a total stock of 2.99 housing. In fact, at least 50% of the million dwellings). According to a report houses built in these areas — where drafted in 2014 by the Bureau of Third housing demand is high but supply is Sector Social Entities of Catalonia,8 some low — must be protected. Since then, 230,000 dwellings were needed at the however, “there has been very little time to achieve this target, since when no development of AREs”, bemoans the substantial progress has been made. urban planner Maria Sisternas. The DESC Observatory and the The Director of the Catalan Housing University of Barcelona’s TransJus Agency, Judith Gifreu, recognises that Research Institute also drafted a report the crisis “has led to a paradigm shift in 2017 to assess the first 10 years that makes AREs practically infeasible”. since the Catalan Housing Act came Given this situation, she explains that into force 9, noting the reasons for its the Catalan government’s Department scarce implementation. The eruption of of Territory and Sustainability (which the economic crisis, in addition to the the Catalan Housing Agency is subsequent cuts in public investment, answerable to) has been working put obstacles in the way of implementing on “adapting the tool of AREs to pioneering acts and policies in 2007. today’s socio-economic conditions and, consequently, the possibility of implementing them”. Which is why JUDITH GIFREU it is pushing for a revision of (Catalan Housing Agency) the AREs’ urban-development believes it is “not feasible” to master plans throughout develop strategic residential areas Catalonia, in accordance with as conceived in 2007 and that they the establishment of the future have to be adapted to “the current sectoral territorial housing Plan. socio-economic conditions 49 Judith Gifreu, the director of the Catalan Housing Agency (AHC) during her talk at the Barcelona Housing and Renovation Forum (FHAR). Note that the Sectoral Territorial In the case of Catalonia, this led to the Housing Plan had already been passing of Act 24/2015 in the Catalan provided for in the Act of 2007, where Parliament, as a result of the popular it was scheduled to be drafted within a legislative initiative (ILP) against period of one year, that is, in 2008. This the housing emergency and energy was the plan in which the regulations’ poverty, presented by the PAH, the targets and implementation calendar Alliance against Energy Poverty (APE) were to be specified. However, and other social movements. Among following the eruption of the economic other issues, under these regulations, crisis, it failed to materialise, and it large property owners had to offer would be another decade before the social rentals to families in vulnerable Catalan government would once again situations, before they could proceed attempt to deal with the issue. to evict them, or allocate empty flats to That decade of paralysis in social rental housing. Nevertheless, it social housing policies coincided should be noted that nine months after paradoxically with the period in which the Act was passed, these and other more people had difficulties ensuring articles were appealed against before this right was guaranteed, in a context the Constitutional Court by the then of economic crisis and a wave of PP-led Spanish government and did not housing evictions. Given this situation, come back into force until 2019, after social movements championing the the partial withdrawal of the appeal by right to housing pushed for the passing the PSOE-led Spanish government. of emergency housing legislation to meet at least the most immediate needs of people experiencing residential exclusion. RENT REGULATION IN CATALONIA What routes are available for expanding the social and affordable housing stock? Besides the emergency measures On the other hand, we find measures incorporated by Act 24/2015, the need that depend on re-using the already remains for embarking on structural policies existing housing stock. For example, to expand the social and affordable housing by exercising pre-emption rights, stock, under various formulas. On the one public authorities have priority when hand, there are those based on building it comes to buying dwellings for sale, new homes, whether through public to allocate them to social and public initiative or a public-private partnership; rental housing. Another measure of or the establishment of obligations on the this kind would be expropriation of the property sector by the Administration, use of vacant flats for allocation to for example, the obligation to allocate social housing. There are also measures 30% of new property developments and associated with renovation that can major renovations to protected housing, be used for incentivising affordable brought about by Barcelona City Council in housing prices, for example, by making September 2018 on the initiative of social subsidies conditional on this purpose or movements. putting lease prices below those of the reference index. As for public-private partnership projects, note too the Administration’s collaboration Judith Gifreu explains that the with the social and cooperative economy. Barcelona Housing Consortium, The most extensive projects here are the which is co-owned by the Catalan assigned-for-use co-operatives, in which government, has linked certain the latter are the owners of a housing block financial subsidies for renovations and their members, paying an affordable to letting dwellings at prices below monthly fee, can enjoy the use of their the reference index for rental prices. dwelling in perpetuity (that is, they have She adds that other mechanisms may the right to live in them, even though be applied to influence rent prices they are not their owners). Barcelona City and believes local authorities can Council has been a pioneer in granting contribute here. She refers to the the use of public land to cooperatives for exemptions for municipal taxes and this purpose. A good example of this is La rates linked to renovation and home- Borda, the first cooperative housing block improvement work, provided rent prices built on municipal land in Barcelona, on the are below the index. Can Batlló de Sants complex. Barcelona City Council has been making municipal subsidies conditional, JAVIER BURÓN (Barcelona City Council) since 2019, on putting prices below renovation grants have to be the reference index and renewing tied to rental price reductions, leases for 5 years. Even so, the Manager for Housing and Renovation at although that is not enough in Barcelona City Council warns that they a tight-market situation encountered difficulties during the 51 first year of implementation. following “a speculative and “The problem in a tight market non-productive economic with high prices is that if a model”. This contrasts with the private landlord weighs up the obligations of tenants who, difference between the subsidy if they want to recover their they will receive and the deposit money, have to show that income they will be giving up, everything is in perfect condition. in some cases they may find it more worth their while to keep Sisternas bemoans our having that income and not bother “failed” over renovations, as with the subsidy”, Burón points we have “an ageing housing out. From his point of view, that stock, which we are renting does not mean the measure out, without making any makes no sense, because investments in it”. She is also some owners do apply for it. critical of the inefficiency of However, in a tight-market situation, he believes it has to technical building inspections be accompanied by rental price (ITEs), which are legally regulation. mandatory for properties that are over 45 years old, although non-compliance MARIA SISTERNAS (urban planner) is commonplace. These inspections should serve to owners will have to oversee and guarantee that the “prove”, with documentary oldest dwellings undergo the evidence, the investments appropriate renovation works. they have made in the quality of their flats and The possibility of both renovating “how that is reflected in and reusing the existing stock their rent price” for social and affordable housing through other channels (expropriation of the use of As for the maintenance and vacant flats, pre-emption renovation of dwellings, the rights and so on) and building urban planner Maria Sisternas new dwellings through believes that more control the collaboration of public and transparency of owners is institutions with the private required, to ensure they provide sector are provided for by one of evidence of the investments the latest legislative advances in they have made in the quality of housing in Catalonia. This is the their flats and show “how this Decree on Emergency Measures relates to the rental price”. She for improving access to housing complains that many owners (Executive Decree 5/2019), are currently raising their rent which came into force on 31 prices when renewing their December 2019 and was ratified leases, without having made by Parliament on 23 January any investment in maintaining 2020. Its contents are explained and improving their dwellings, below. RENT REGULATION IN CATALONIA Jaime Palomera, the spokesperson for the Tenants’ Union, and Irene Escorihuela, the Director of the Desc Observatory, during the Rent Regulation Conference held at the ICAB. The Emergency Measures Decree includes important advances in housing policy Despite its name putting the emphasis JUDITH GIFREU on emergency measures, the decree (Catalan Housing Agency), not only includes such measures for on the emergency measures decree meeting the housing needs of groups at risk of exclusion but also establishes “It is the biggest amendment the bases for expanding the public and to the regulatory framework affordable housing stock in the medium for housing in Catalonia and long term. since 2007” Note that this is the second version of a decree that was first presented by the Catalan government’s Ministry of Territory and Sustainability in March 2019 and which, at first, did not For the Director of the AHC, satisfy the aspirations of the social Judith Gifreu, that decree is “the movements. Nor did it reach the stage main amendment to the regulatory of being voted on in Parliament, for framework for housing in Catalonia, want of support. since the passing, in 2007, of the Act on the right to housing”, a reflection From the time of that failed first shared by the Manager for Housing attempt, social movements continued and Renovation at Barcelona City to engage in dialogue and negotiate Council, Javier Burón. Gifreu points with the Catalan Ministry of Territory out that the decree establishes the and Sustainability on the matter, and bases for expanding the social-rental made significant inroads. This led to housing stock, containing rent prices the recent presentation of a second and combating the housing emergency proposal, which social movements have more effectively, with a cross-cutting expressed their overall satisfaction approach in which urban planning plays with, although they still regard some of a major role. The main new features of its measures as insufficient. the decree are detailed below. 53 1. MORE OBLIGATIONS ON LARGE PROPERTY OWNERS TO OFFER SOCIAL RENTAL HOUSING TO VULNERABLE GROUPS The first set of measures in the decree are For her part, the Director of the DESC aimed at guaranteeing the right to housing Observatory, Irene Escorihuela, believes for people in vulnerable situations, boosting that one of the main advances is the fact some of the measures provided for in Act that, under the decree, large property 24/2015. They extend the range of cases owners have to offer social rental housing in which large property owners have to “despite the fact that there are no legal offer social rental housing to individuals proceedings behind it”, where a lease and families who can provide supporting has been terminated when the tenant evidence, with the relevant reports from the is going through financial hardship. The municipal social services, that they are in a spokesperson for the Barcelona PAH, Lucía vulnerable situation. Delgado, also highlights the inclusion of They will not only have to offer social rental squatting among cases of social rental housing to people in vulnerable situations housing, even though she bemoans the who are affected by eviction processes measure’s time limitations. She explains (defaulting on mortgage or rent payments), that the decree does not provide for but also to tenants whose leases have been granting social rental housing to people terminated after they are no longer able to who are squatting from now on or to people continue paying the rent at the same price who had been squatting in a property for as before, let alone a higher one. Social under 6 months when the decree came into rental housing will also have to be granted force. “They made it like an amnesty, but the to people who, by the time the decree has problem is not going away”, she warns. come into force, have been squatting in a On the other hand, note that the term dwelling belonging to a large property owner. of social rental housing leases is being For Gifreu, the broadening of obligations on extended from 3 years to 7 years in the case large property owners to offer social rental of dwellings belonging to large property housing to families in vulnerable situations owners. The Tenants’ Union warns that “is another way of making progress with the decree proposes that the extension regard to the social returns on bank rescues, to 7 years for social rental housing can as was the tax on vacant dwellings in its only apply during a 3-year period. As day”. the housing emergency is expected to continue beyond this period, the Union supports extending the decree's period of implementation to a minimum of 6 years. IRENE ESCORIHUELA (DESC Observatory)) In addition, the decree strengthens the one of the main advances of the control requirements that the authorities emergency measures decree is will have to make to guarantee effective the obligation on large property compliance with the obligation to offer owners to offer social rental social rental housing. Besides the control measures, Gifreu also points out that the housing when a lease ends, decree provides for encouraging private where a tenant is going through initiatives to make protected rental housing financial hardship through public financial aid. RENT REGULATION IN CATALONIA 2. 3. ESTABLISHING THE CONDITIONS THAT EXTENDING THE CASES IN WHICH A WILL ENABLE THE EXPROPRIATION OF LANDLORD IS A LARGE PROPERTY THE USE OF DWELLINGS BELONGING OWNER TO LARGE PROPERTY OWNERS FOR SOCIAL RENTAL HOUSING The decree extends the cases in which landlords are deemed to be large The decree also overcomes what had property owners (up to now, basically been an obstacle up to now to the banks) and are therefore subject to possibility of expropriating the use the above-mentioned obligations. of vacant dwellings owned by banks According to the decree, this category and vulture funds for allocation to also includes natural persons with more social rental housing, as established than 15 dwellings, a measure which under Act 24/2015. When the Spanish social movements regard as positive Constitutional Court lifted the suspension but still insufficient. on most of the articles of Act 24/2015 The Tenants’ Union warn in their and Act 4/2016 (subsequently passed published assessment of the decree by Parliament as an attempt to dodge that a distinction has to be made for the suspension of the former), it applied individuals with five or more rented one condition for expropriations to apply. dwellings and who, thanks to that, can Owners had to be compensated and the live off rent as small property owners. Constitutional Court did not consider “Those with one or two properties that social rent prices were sufficient in must not be put in the same category that respect, as both acts had initially as those with ten or fourteen”, they proposed. emphasise. Compensation for owners will be 40% of the price set for protected housing “When they presented the decree in March, they legislated on this price without us”, explains Lucía Delgado from the Barcelona PAH. An agreement on this point was reached in the second version. It sets the compensation at 40% of the price established for officially protected dwellings. The measure therefore complies with the Constitutional Court’s requirement and can go ahead. 55 4. 5. 6. ACCOMMODATION ON LAND STRENGTHENING THE MORE DISCIPLINARY POWERS ORIGINALLY ALLOCATED AUTHORITIES’ PRE-EMPTION FOR LOCAL AUTHORITIES EXCLUSIVELY FOR FACILITIES, RIGHTS TO GUARANTEE THE RIGHT TO From now on, local authorities HOUSING BOTH FOR PEOPLE AT The decree also strengthens will also have more disciplinary RISK OF SOCIAL EXCLUSION AND the pre-emption rights of powers. They will be able to FOR OTHER SOCIAL GROUPS authorities (or preferential fine owners that breach their purchase of dwellings for obligations over the social Besides social rental housing, sale to expand the public and functions of their properties. the decree provides for another social housing stock). One the The Housing Act of 2007 alternative to ensure the right to one hand, it strengthens the housing for people at risk of social authorities’ capacity to exercise already established penalties for such breaches, but up to exclusion and other groups, such this right over dwellings that come from foreclosures and now “we had been facing many as young people and the elderly. These are known in Catalan as belong to banks. On the other difficulties as local authorities hand, it enables local authorities wanting to bring disciplinary allotjaments dotacionals, which to exercise their pre-emption proceedings, to carry out refers to “housing specifically for rights over land. They can buy inspections and issue fines, as people at risk of social exclusion land or complete buildings we were understood to lack the built on land originally intended where there is a need to boost jurisdiction”, explains Javier for a facility”. the public housing stock. Burón. He considers the decree It should be borne in mind According to data from the AHC, here “clarifies and strengthens” that urban planing deals it is thanks to its pre-emption the capacity of local authorities with residential land — which rights that the Catalan to carry out inspections and dwellings can be built on — and government has been able issue fines. “dotacional”, land which is meant to acquire 3,000 flats for its for facilities, and in both cases it public housing stock over the could be either public or private. last 4 years. This measure was 7. What this decree enables is already in force in cities such as LINKING PUBLIC AID TO Barcelona and now the decree PUTTING PRICES BELOW THE boosting the construction of is extending this possibility of REFERENCE INDEX facilities, which are not strictly exercising pre-emption rights speaking dwellings but which to every municipality in the As for rental housing, the enable temporary housing country until 2027. decree also stipulates that solutions to be provided for where lease prices go above various groups, on “dotacional” the rent reference index, land. owners cannot receive public Dotacional dwellings have aid (to promote the rental, already been around for several subsidise renovations and so years in Barcelona, but from now on). What is more, to ensure on they may increase in number that tenants and owners and extend to more areas in the have the same information on territory. “Dotacional” dwellings average rental-market prices, can also be built on private publication of the reference land, state assisted by the index has been established Administration, which will ensure as a mandatory measure for their prices and conditions are leases and for offers published adapted to the general interests on property portals. Failure to and needs of the groups they are comply with this measure will allocated to. constitute a serious violation and penalties will be applied. RENT REGULATION IN CATALONIA 8. 9. LAND RESERVES ARE BEING INCREASING LAND RESERVES FOR EXPANDED FOR PROTECTED HOUSING PROTECTED HOUSING AND CAN NO LONGER BE WITHDRAWN FROM THE CLASSIFICATION In general, the decree significantly increases the land reserves for protected Judith Gifreu also points out that an housing. If, up to now, 30% of the land important advance is “the permanent had to be reserved for protected housing classification for new officially protected on buildable land (fit to be built on) and housing”, long demanded by social unconsolidated urban land (land located movements, which, up to now, had only in an urban centre and not yet developed), been in operation in the Basque country, the decree raises the percentage to since 2003. This means such dwellings 40%. On buildable land, this percentage can no longer be withdrawn from the social is expected to rise to 50% in the housing classification and returned to the metropolitan area. On the other hand, for private market, as is still the case in the consolidated urban land (where buildings country’s other regional communities after have already been constructed and are a period of between 20 and 25 years. to be pulled down for redevelopment or Javier Burón, the Manager for Housing renovation), it sets a mandatory reserve of and Renovation at Barcelona City 30% for officially protected housing. This Council and an expert in the field, explains is the measure that was approved at the how the decree manages to provide de Full Barcelona Municipal Council Meeting facto permanent protection for officially of September 2018 and which the decree protected housing in Catalonia. According now “ratifies”. Another important aspect to the legal system on housing, a is that half of these protected housing distinction is usually made between land reserves will have to be mandatorily and its overlying structures, which consist allocated to rental housing. of the buildings that are constructed on This measure is linked to a re-structuring it. Burón explains that the new decree of the categories of protected housing. “unifies the urban-planning classification” Up to now there had been three types of of land and its overlying structures: “Where protected housing, all with prices below land in urban planning is classed as land for the market rate, but with differences officially protected dwellings, its overlying between one another. In order from structures will also have to correspond to most to least inexpensive, these three that housing system”. The land will have officially protected housing types were: to remain classified as such unless the special system, general system and urban-solidarity targets established in the state-assisted system. Under the new Housing Act of 2007 have been reached decree, there are now only two simplified (15% affordable housing out of the entire protected housing categories: rental housing stock). In addition, should a (mandatory) and the rest (which can be municipality reach this 15%, it would not be sold or rented out). What it does, then, allowed to reduce this percentage either. with land reserves for protected housing That means de facto protection of officially is to make it obligatory for at least 50% of protected housing in perpetuity, or at least flats to be allocated to the first of these for many decades. two categories. While it sees the proposal as a positive development, the Tenants’ Union points out that it would have to go further and follow the Basque example on this point, where, from 2020 on, all new protected housing will be rental. 57 10. DWELLINGS IN BUILDINGS CONSTRUCTED ON PRIVATE RESIDENTIAL LAND WILL HAVE TO BE ALLOCATED TO RENTAL HOUSING The decree also aims to promote an expansion of the private rental housing stock, so that the increased supply The COVID-19 crisis has led to will help to counter the upward trend in rental prices. The goal is to enable the launch of emergency housing private residential land to be reserved and rental measures in urban planning for the construction of dwellings that are not divided The usual development of housing policies and horizontally for sale. In other words, debates at every territorial level (municipal, the flats cannot be sold off separately Catalan-region, Spanish State) was interrupted but will have to be rented out. The only due to the COVID-19 health crisis and its socio- alternative would be to sell the entire economic consequences. The declaration of the block to another operator that would be state of emergency in Spain on 14 March, and mandatorily required to rent its flats out. the lockdown of the population under various conditions at each stage of the emergency has had serious repercussions on housing. On the Note that, once the content of the one hand, we should take into account that the emergency measures decree has been halt in economic activity in several sectors has reviewed, should social movements made it difficult for many families to continue regard it positively, they will insist on paying their rent or mortgage instalments. examining its level of implementation On the other hand, it has also resulted in a to ensure compliance. Judith Gifreu loss of earnings for some operators in the explains here that a fundamental property sector, especially for owners of tourist element for implementing the measures apartments or hotel establishments. provided for in the decree is the Catalan That is why the emergency measures taken by Sectoral Territorial Housing Plan, which is the Spanish government during the state of currently being finalised by the Catalan emergency included some that were aimed at government. “This document must serve mitigating the effects of the housing crisis. for us, the authorities and the social, economic and institutional players, as a Royal Executive Decree 11/2020, of 31 March, on guide for determining the main housing supplementary emergency measures in social policy measures, including, obviously, the and economic areas for tackling COVID-19, puts expansion of public housing stocks and a stop to rent-default evictions for individuals the social or affordable rental housing in vulnerable situations and without housing stock, with targets for the next fifteen alternatives, as from 2 April and for a maximum years”, she concludes. period of 6 months. It also provides for an extraordinary extension, as from that same date and for the same period of time, of leases which expire up to two months after the end of the state of emergency. Where individuals have financial difficulties paying their rent in the usual manner, the decree envisages different measures depending on whether the dwellings RENT REGULATION IN CATALONIA belong to small or large property owners (the latter with over 10 dwellings or possessing a gross floor area in excess of 1,500 m2). For small property owners, a phased process is established. In first place, the two parties should attempt to reach a voluntary agreement (either for postponing or for totally or partially forgiving the tenant’s debt). In second place, provided that the first option has not been possible, tenants may request a temporary and extraordinary postponement of their rent payments and landlords will be under an obligation to present a proposal, within a period of one week, for postponing the debt or arranging for its payment in instalments. Third, and only where owners refuse to accept a proportionate pro rata division of the debt, tenants may request a loan guaranteed by Spain’s Official Credit Institute (ICO), repayable within a maximum period of ten years, to pay for up to 6 months’ rent. Tenants who are struggling to pay back this loan under the terms established could also request financial aid of up to 900 euros a month under the State Housing Plan, through the regional community in which they live. As for large property owners and public housing organisations, tenants may also apply for a temporary postponement of their rental payments. If no voluntary agreement is reached with the landlord, the landlord can choose between two options: halving the rent price for a maximum period of 4 months; or applying a moratorium to rent payments during the state of emergency and the following months (which can be extended one month at a time up to a maximum of 4) should the vulnerable situation continue during that time. Accumulated debts must be paid back in instalments and without interest over a 3-year period, once the moratorium has ended. Several administrations have criticised the fact that the decree establishes the same obligations on the public housing enterprises as it does on the large property owners (banks, investment funds and so on), which carry out their activities for profit. Before they can resort to any of the above- mentioned measures, families will have to provide documentary evidence that they are in a vulnerable situation resulting from the COVID-19 crisis. This will be considered so if the employment situation of the household members has been 59 affected by Covid-19 (for example, they or provided mediation services between have become unemployed or have been landlords and tenants in search of temporarily laid off under a Temporary solutions. So, for example, Barcelona Employment Regulation Record (ERTO) City Council applied a moratorium for and, in addition, the family unit falls rent payments to its municipal housing below the income threshold (3 times the stock, where 8,748 families live, between Public Income Indicator with Multiple April and September 2020. It established Effects (IPREM)) and the financial burden that those families could pay back the of the rent and utility bills is 35% or more debt due, as of October, over a period of of their net income. 54 months. This measure has also been Besides rent-related financial aid, the extended to 400 commercial premises Spanish government has also approved located in the ground floors of buildings, a moratorium of mortgage payments with rental properties developed by for up to 3 months for individuals in the Municipal Institute of Housing vulnerable situations who have become and Renovation (IMHAB), and to 1,400 unemployed or had their income reduced officially protected dwellings developed because of the COVID-19 emergency and by the IMHAB. who can provide documentary evidence Similarly, both the IMHAB and the of their situation. Once this moratorium Hàbitat 3 Foundation (which manages period has ended, payments due will be 250 dwellings under an agreement with postponed for an equivalent period, that Barcelona City Council and the Catalan is, mortgage payments will be deferred government) have revised rent prices for up to 3 months. downwards for families living in the Note too that although the Spanish dwellings managed by them and who State is the authority responsible for have been suffering significant financial establishing the main extraordinary effects caused by the COVID-19 crisis. measures and general guidelines that Finally, the City Council has provided have to be abided by throughout the financial aid for rent payments for families territory during the state of emergency, who live in flats in Barcelona’s Social both the Catalan government and the Rental Housing Pool (with 891 dwellings) region’s local authorities have also and suffer financial hardship caused by implemented various housing measures, the COVID-19 crisis. This financial aid within their scope of action. reached 11,689 IMHAB tenants. Notable measures taken by the Catalan Apart from these extraordinary current government include the moratorium on measures, the social and financial rent payments for its housing stock for consequences resulting from this health a total of 20,000 households, from April emergency are raising questions about to the end of the state of emergency, the development of the housing-related for debts to be subsequently paid plans that had been envisaged. The back in instalments within a period of political decisions of the post- COVID-19 1 year. Progress has been made in the crisis era will be decisive in determining payment of rent subsidies to groups in whether, after months of interruption vulnerable situations, such as women from the state of emergency, progress suffering gender violence or people is made on the action lines and debates over the age of 65. on housing policy followed previously, or At a local level, some local authorities whether we take a step backwards, which have applied moratoriums for rent could prolong even further the housing- payments to municipal housing stock emergency situation that Catalonia and Spain have been suffering since 2008. RENT REGULATION IN CATALONIA 06 Benchmark rent regulation policies in Europe and the rest of the world 61 When various positions on price Second, we find references to moderate regulation are compared in the political rent control or rent stabilisation, in and media debate, many nuances are relation to the more flexible price- often lost regarding this highly complex control systems that were implemented issue. Far from being an unequivocal term, rent regulation covers a broad range of regulations, with very Rent-stabilisation significant differences depending systems began to on the period in which they were be applied in the implemented or their adaptation to the context of a specific city or country. 1970s So much so that in the various studies on this subject, we find a range of terms corresponding to the major in various parts of the world from historical trends to regulate rental the 1970s on. Coinciding with the oil prices, which date back to the early crisis that led to the inflation of prices —including housing prices—, and thanks to pressure from various social Price-freezing systems movements, such price-stabilisation have been applied systems were launched in several 11 since the first third of countries and cities all over the world. the 20th century Unlike rent-price freezing, the system is based on benchmark price rates, which can be exceeded up to a set maximum, 20th century. and which are periodically updated in If we follow their chronological order, line with inflation. What’s more, they we first find rent control or rent usually contain other measures which freezes in reference to the strictest bring flexibility to the regulation. For regulation systems that were applied example, they usually exclude newly in various European countries and constructed dwellings earmarked the United States coinciding with the for rental housing (known as “built- First and Second World Wars and the to-rent”) so as not to disincentivise postwar period and up to the 1960s. investment in flats. Note that armed conflicts led to the They also enable owners to raise rental mass migration of populations to urban prices above the pre-established centres to work in the military industry margin if they invest in improving or and, at the same time, resulted in renovating their dwellings, albeit with the destruction of a large part of the limitations. In addition, they help to housing stock. Given the context of protect tenants, with mechanisms excessive demand and scarce housing for preventing evictions and forcing supply, rent prices tended to rise and tenants to move. Also excluded from many countries opted to freeze them, regulation in several rent-stabilisation establishing rigid price ceilings. 10 systems are dwellings built after the BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD systems have been implemented methods which, based on the stabilisation — so as not to disincentivise system, supplement this with additional the building of dwellings — and measures. luxury residences, among other Below are a number of contemporary exceptions. 12 examples of how rent prices are being regulated in various cities around the world. A more in-depth explanation is given of the The wave of neoliberalism cases of Berlin and New York, cities that were has been undermining represented at the Barcelona conference stabilisation systems on rental price regulation which prompted since the 1980s this publication, and, more generally, the experiences of Paris and Vienna. Following the surge of Neoliberalism in the 1980s, headed by Margaret Thatcher Faced with the phenomenon in the UK and Ronald Reagan of gentrification, there is in the USA, price-stabilisation a growing need to step up systems were undermined across the globe and, in some cases, rental price regulation vanished completely. Even so, the debate around rental price regulation has recently reappeared with a vengeance, in the face of the gentrification processes occurring in many of the world’s cities. In some cities such as Berlin, where price-stabilisation systems were already up and running but not totally effective, changes have even been planned to tighten the regulation. For cases such as Berlin’s, there is now talk of third-generation regulation, in reference to the price-control Florian Schmidt, the head of housing and planning in the Friedrichshain-Kreuzberg district of Berlin and Lucy Joffe, the Assistant Commissioner for Housing Policy at NYC Department of Housing. 63 Berlin 6.1 To understand how rental housing is currently regulated in Berlin and in general throughout Germany, we will first examine the situation in the country and FLORIAN SCHMIDT (Berlin City Council) its capital for leases and look at how the is critical of the privatisation of present price-stabilisation system has the city’s public housing stock evolved over time; a system which dates back to the 1970s and which has come on over the last two decades in leaps and bounds since that time. Unlike Spain, Germany as a whole, especially in its urban centres, has a strong rental housing culture. The percentage of tenants in its big cities is close to 80%, while the remaining 20% are owner occupiers living in flats. However, in the country as a whole, the German cities experiencing a tight rental- proportion of tenants drops to 50%, given market situation, such as Berlin, have had the higher proportion of property owners a rental brake in place since 2015, which in towns and rural areas. This was the prevents their prices from rising more explanation given by Florian Schmidt, than 10% above the benchmark index, as a sociologist and urban activist and explained below in greater detail. However, the head of housing and planning, since various political and social sectors are 2016, of the Friedrichshain-Kreuzberg critical of this system for not being district located in the centre of Berlin. sufficiently effective. According to Schmidt, the problem 84% of Berlin's population represented by rising rent prices is lives in rental housing being worsened by the scarcity of public housing. 7.1% of rental dwellings in Berlin are social housing and 5.7% have some More specifically, the country’s capital, other form of protection, according to which is home to more than 3.5 million data from Investment Bank Berlin from people, has 1.9 million dwellings, 1.6 million 2017. 13 A percentage which, according to of which are rented out (84%). As many as Schmidt, is low, even when we remember 1.4 million of these currently have regulated that the equivalent in Spain is no higher rent prices, according to Schmidt. than 2% overall. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Schmidt reports how over the last 20 years the city has lost a large part of its public housing stock, mainly through sales to private companies, blind support from Germany’s conservative governments for the neoliberal economic current and the halted activity of public companies dedicated to promoting the construction of such housing. Add to that the constant growth of Berlin’s population, with every year seeing an average of 40,000 newcomers, resulting in greater need for affordable housing. A system for stabilising prices and open-ended leases since the 1970s leases in Germany have been open ended, apart from exceptional cases stipulated in Germany is one of the countries legislation, for example, if owners have to where rental price controls were first use their rental dwelling for themselves or introduced, during the first half of the a family member, if they are experiencing 20th century, initially through rent- serious financial difficulties having their price freezing, and later, from the 1970s property rented out or if their tenant has on, through rent-price stabilisation manifestly breached the terms of the systems. lease they signed. The first step towards establishing a Rent regulation has been developing stabilisation system was to limit the continuously over the last few decades. rise in rental prices during the lifetime In 2001, it was incorporated into the of a lease up to a maximum determined German Civil code, thereby harmonising by the costs of dwellings with similar the various regulations on leases under features. This was the precursor to a single system, and the Mietspiegel the first rent reference indexes (or reference index became binding. Later, Mietspiegel), a key concept within the in 2015, another key piece of the present system for regulating lease prices in rent regulation system was approved: Germany, which establishes a price the rental brake or Mietpreisbremse, bracket according to the features of a which puts a cap on the prices of new dwelling and which was initially merely leases. Even more recent are the new informative and non-binding. 14 measures, approved in 2019, both for the At the same time, Germany also country as a whole and specifically for introduced an open-ended lease model in Berlin, to strengthen rent regulation. the 1970s, thereby guaranteeing housing- tenancy stability. From the 1970s on, all 65 Some of the key concepts are examined in detail below, so we can understand rent regulation in Germany with regard to rental price affordability. Price reference index (Mietspiegel), the cornerstone of the regulation system As mentioned above, a key piece of the It should be noted that this reference German system for regulating lease index is periodically updated, by once prices is the rent-price reference index again comparing the rental prices of (or Mietspiegel). dwellings with similar features, so the reference rate can rise. In other words, Florian Schmidt explains how this the index “slows down but does not reference index establishes various stop” price rises. price scales according to the features of dwellings, taking account of various factors Schmidt warns that another key issue (location, size, age, quality of facilities in the way this index is produced and so on) and assessing the costs of is the age of the leases that are similar flats. The head of housing and taken as references. If only the most planning for the Friedrichshain-Kreuzberg recently signed leases were taken district in Berlin explains that this price into account, the rent-price reference scale establishes “an average rent-price index would tend to rise (unless the reference for the city” and that when an period considered has coincided with owner wants to raise the rent price of an a recession or drop in prices). If the ongoing lease “they cannot do so by more leases from years back were taken into than 20% above this average price”. account, the rent-price index would tend to drop. Even so, Schmidt warns that this does not mean that rent cannot go above this 20% cap indefinitely over time. SCHMIDT: the reference index “slows down but does not stop” price rises Florian Schmidt, the Head of housing and planning in Berlin’s Friedrichshain-Kreuzberg district, at the Rent Regulation Conference held on 18 November 2019. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Half of Germany’s most populated cities, such as The period taken for calculating the reference index has been varying Berlin, have a rent- with time, depending on the political price reference persuasion of the government. While index that must be in the late 1970s it was calculated complied with taking into account all the country’s rental housing, from 1982 on, with the arrival of the government under the conservative Helmut Kohl (CDU), According to the latest available data it only took account of leases signed from Germany’s Federal Institute for within the previous 3 years. The Construction, Urban and Regional Research period now is 4 years. Another factor (BBSR), close to half of the most populated also needs to be considered: how municipalities (with 100,000 or more frequently the index is updated. The residents) and a fifth of municipalities more often it is updated, the more it with populations ranging from 50,000 to will encourage a widespread rise in 100,000 had an authorised Mietspiegel in 13 rent prices in the city (unless it occurs 2014. Berlin is one of these municipalities.  after a period during which there has Schmidt explains that most rental housing been a drop in prices).13 in the capital (1.4 million out of a total The Mietspiegel differs in each of 1.6 million homes) is regulated by this municipality and it should be borne reference index. The remaining properties in mind that it is not mandatory to that are excluded from regulation fall produce it. State regulations advise under some of the exceptions to the municipalities to produce a reference Mietspiegel: detached or semi-detached index when this is required to ensure city residents have access to housing single-family dwellings; homes located at reasonable prices in line with in two-dwelling buildings; newly their purchasing power, normally in constructed buildings completed after 1 tight-market situations. In addition, January 2016 or with particular features Mietspiegels are not mandatory (or (very large dwellings, with luxury features authorised) in every municipality or, the opposite, very precarious, which that has been provided with one, and in many cases they are merely for justify establishing their rent price above information purposes. or below market rates). 67 New leases cannot exceed the price index by more than 10% A new mechanism came into this lack of effectiveness to force in 2015 to regulate several reasons, mainly to the lease prices, the so-called exceptions that allow owners SCHMIDT: Mietpreisbremse or rental brake, to dodge price caps. the exceptions to which is also closely linked to the rent brake when One of the most controversial the previous index (Mietspiegel). alteration work is exceptions is the one that “Up to then, prices for new carried out on dwellings allows prices to go above leases had been spiralling “have encouraged those capped by the price upwards”, Schmidt points out. speculation” reference index and the rental The rental brake establishes that, brake, when renovation work when it comes is carried out to signing on a dwelling. new leases, SCHMIDT: Schmidt “If the flat was furnished there prices are The brake on rental bemoans the was no brake either”, remarks capped fact that the Schmidt. Other exceptions prices “has not at 10% of regulation include dwellings rented the rental been as effective has even out for the first time since 1 reference as thought, mainly “encouraged October 2014, the aim being price. State because of the speculation”. to prevent the measure from regulations numerous exceptions” In such cases, disincentivising the entry of limit the owners can new flats into the rental market. application of shift part Nor are dwellings affected by the rental brake in tight-market of their renovation costs the rental brake where they situations, where there is an onto their lease prices. are rented out for the first time imbalance in the market which after a complete refurbishment, Another exception is flats causes sharp rises in rent prices. among other things. that already had rent prices Such is the case with Berlin, above the ones capped by the In addition to the terms where, the Mietpreisbremse can Mietpreisbremse (in previous provided for in the lease therefore apply.14 leases) which are exempt regulations, the German Florian Schmidt believes from adjusting to the index. Economic Penal Code this system “has not been as Of course, owners cannot use (Wirtschaftsstrafgesetz) effective as it was thought this exception for rent-price establishes fines of up to to be", as it has been used increases agreed to during the 50,000 euros for abusive rent, “for putting a brake on” the final year of the previous lease. considering as such prices that pace of growth of rent prices, rather than “stopping” their SCHMIDT is critical of rise. Here he maintains that, the fact that it is up to in the case of new leases, tenants to report illegal Berlin’s tenants have to rent prices and that it spend close to 40% of their is not an obligation on income on rent. He attributes owners monitored by the Administration BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD exceed the reference index by 20%. Prices that exceed the reference index by 50% or more are deemed “indecent” or “harmful” and can lead to prison sentences of up to three years or larger fines, according to the Friedrichshain-Kreuzberg district’s Head of housing. In both cases it must be shown that the owner has taken advantage of the tenant’s vulnerable situation, inexperience or lack of knowledge. Schmidt warns of the numerous difficulties tenants have in demonstrating that their landlord is unlawfully receiving rent in excess of the Mietpreisbremse’s 10% cap. Rent prices of current leases In fact, until quite recently, cannot rise by over 15% many tenants were forced to in 3 years in tight-market sign leases with prices above situations such as Berlin’s this cap, not knowing whether any of the exceptions to the Mietpreisbremsewere genuinely The conditions for updating rent prices during a being met, and were only able lease's lifetime are established as soon as the lease to make a claim after a drop, if is signed and can be under various criteria. One of they managed to prove that it these is revising in accordance with the equivalent was not the case. Of course, to the German CPI, as has been the case in Spain, this lack of prior information since the passing of the State decree on rentals in prevented people unable to March 2019. pay the rent initially demanded from accessing certain rental But this price revision in Germany can also be flats. “Now it has changed and governed by the conditions initially agreed to by tenants can ask what price landlord and tenant or according to how reference the previous tenants had paid, prices evolve for comparable dwellings in the rental but it remains an option for market. It is in the third case that the Mietspiegel tenants to ask for a reduction (rent reference index) can be resorted to, although in the rental price and not an not necessarily, because it may be done in obligation on landlords”, he accordance with other parameters (a justified explains. expert report, a database of comparable housing rentals and so on). Whichever price revision formula is used, price increases for current leases cannot exceed 20% within a period of 3 years and 15% in a tight-market situation such as the one Berlin is presently experiencing, although this excludes the additional increases that may result from modernisation work on dwellings. 13 69 Regulation loopholes and pressure from gentrification are behind the new reforms from 2019 on The regulation mechanisms explained Schmidt also refers to the phenomenon above have not been sufficiently of “building subdivision” as a symptom effective so far to halt the rise in lease of property speculation. In other words, prices, because of the ineffectiveness of there has been an increasing horizontal some aspects of the regulations, on the division or segmentation of buildings one hand, and the continued presence of over the last few years, to fit in more socio-economic factors putting upward flats, and thereby draw out as much pressure on rent prices, on the other. financial profitability as possible. Among these factors, which are common By taking into account all these factors to many cities around the world, Schmidt and the confirmation that many aspects mentions the redevelopment of several of the rent price regulation could be urban areas, which have increased the improved, both the federal government value of buildings; and global phenomena of Germany and the regional government such as “company investment of global of Berlin recently launched measures to capital” in housing, with the aim of make it more effective. Below we explain maximising their financial profits, at first the federal reforms, which came the cost of raising the rent prices of the into force in January 2019, and then buildings acquired or speculating by the measures recently launched by the selling them at higher prices. regional government of Berlin (of the In a country with a greater prevalence of Land or federal state), which have been single-family dwellings or buildings with in force since the start of 2020. a smaller number of flats than in Spain, The federal reform limits price rises due to renovation work The German government approved 2. A new cap is established for rent- a reform of its rental regulation price rises for modernisation work (the Mietrechtsanpassungsgesetz) on on dwellings. While renovation work 18 December 2018, which came into could previously increase annual force on 1 January 2019. rent by an amount equivalent to The main changes are notably as 11% of the cost of the work carried follows: out, the percentage has currently dropped to 8%. 1. Landlords are obliged to duly justify any rental prices that exceed the 10% 3. The amount that prices can be cap, that is, to demonstrate that they raised by for modernisation work on fall within some of the exceptions dwellings is limited to 3 euros per provided for in the Mietpreisbremse square metre (during a period of 6 (rental brake). years) or to 2 euros per square metre, for dwellings where the rent price is below 7 euros per square metre. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD 4. This excludes modernisation work that justifies an increase in rent prices determined according to type of alteration work. For The Berlin regional government is example, work necessary for freezing reference rent prices for maintaining the dwelling's good 5 years, a pioneering measure in state of repair is not included Germany and the rest of the world here. What is more, tenants can reject the work or the price As well as the above reform launched throughout increase it leads to if they are in Germany in 2019, the Berlin regional government an especially vulnerable situation. (Land), made up of the Germany Social Democratic Party (SDP), the Greens and Die Linke (the Left) 5. Prices may only increase launched additional measures in 2020. for modernisation work in accordance with previous limits, The most notable of these is the freezing of the if the conditions for revising rent rent-price index for 5 years, so that , throughout this prices that appear on the lease period, they would be governed by the Mietspiegel of are governed by the evolution 2013. Reference prices differ, as mentioned above, of the reference index. This will according to the location and features of a property. not be possible, by contrast, if The maximum monthly price at the most expensive 2 they were conditions agreed to end of the scale would be 9.80 euros per m between landlord and tenant or if according to the Mietspiegel of 2013. the price revision is carried out in accordance with the evolution of The Berlin Court considers the the consumer price index. In the measure unconstitutional and latter case, rent prices can only has referred it to the German be raised for improvement works Constitutional Court if the alterations carried out were outside the landlord’s control. In addition to these reforms, the federal government has also This measure came into force on 23 February 2020, been studying changes to the but less than a month after it was put into operation, calculation basis for the rent-price the German law courts declared it unconstitutional. reference index (Mietspiegel). For According to the Berlin Federal Court, the Land example, it is assessing whether to government has no jurisdiction over rent regulation, extend the number of leases taken which was why it took the case to the Constitutional as a reference. While leases signed Court for its ruling on the matter. over the last 4 years are currently The measure, now awaiting the ruling from the taken into account, the proposal Constitutional Court, also establishes that rent-price now is to go back further in years, reductions can be requested “retroactively”. That is, if in which case the reference price a tenant were paying rent 20% above the Mietspiegel rate would tend to drop. Another of 2013, they could request its reduction. Furnished change that is being considered is flats are also included in the rent-control system to extend the frequency with which and fines of up to 500,000 euros can be imposed the reference index is updated for reference-price violations. It should be noted from 2 years to 3 years, which that the regulations provide for a limited number of would also help to slow down price exceptions where prices could exceed the reference rises. 13 price (recently constructed dwellings, cases where landlords are experiencing financial difficulties, alteration works in certain cases and so on). 71 SCHMIDT: it is an indispensable measure “for giving citizens breathing space” and for giving the city “time to roll out the machinery There are currently doubts over whether or for affordable housing” not this measure is in line with the German Constitution and whether it will be able to follow its course, owing, above all, to the issue of jurisdiction. Berlin was the first German federal In fact until recently, the regional state to approve a measure with these government believed it had no jurisdiction features. Schmidt explains how it has to do so, but Schmidt explains how it encountered considerable resistance discovered that it could, under a new from the finance and property sectors legal interpretation of federal regulations and the more conservative political from 2014: “A lawyer working for a Berlin parties, in addition to obstacles in the district wrote a small legal essay saying legal arena. that Germany’s provinces did have the He acknowledges it is an exceptional jurisdiction to implement rent regulation measure, but considers it essential […]. It pointed out that there had been a “to give breathing space to citizens” change in federal legislation in 2014 that heavily overburdened financially by gave such jurisdiction, but up to then no rent, and to give the city time “to roll one had interpreted it that way”. out affordable housing-construction To date, the German Constitutional Court machinery”. “This is a process that has still not made any ruling on the takes years, activating land and matter, “although it did state in February organisations that have not carried 2019 that landlords could not ask for out any public housing construction permanent rent regulation but that it was for 40 years”, reflects Schmidt, who legitimate for it to change in line with the considers it essential to make the social situation of cities”, Florian Schmidt most of these 5 years “to balance the affirms. The German Constitutional Court housing market”. Here the doubts over has considered that second-generation its legality represent a harsh setback regulation does not strike at the heart for the regional government, which was of the right to ownership, even if it does confident it could achieve these goals. represent a restriction on freedom of enterprise for the benefit of the common good. In this regard, the doubts that had arisen on the constitutionality of the The constitutionality of the measure because of another issue — that measure under debate: does it represented an excessive interference jurisdiction fall to the Land or in the private rental market and private to the federal government? ownership — seem to have disappeared. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Other measures from Berlin City Council to slow down price rises Besides the measure for freezing reference rent prices, Berlin City Council has other instruments at its disposal to slow down price rises. Schmidt explains there is a municipal byelaw (Zweckentfremdungsverordnung) that bans dwellings from being rented for commercial uses, to counter the “strong trend for turning flats into offices”. On the other hand, using federal urban-planning legislation, the Council is also proposing to demarcate protection areas for local residents (Milieuschutzgebiete) in gentrified areas. In such cases, Schmidt explains that “the modernisation processes leading to rental price rises can be slowed down” and, for example “permits can be denied” for carrying out certain kinds of alteration work. In tight-market areas, the Administration also exercises pre-emption rights. “Public housing companies, of which there are 7 in Berlin, are tasked with buying housing in the free market and receive public money to do that”, explains Seven hundred affordable the Head of Housing in the Friedrichshain- rental dwellings have been Kreuzberg district, who then adds that acquired over two years in the cooperatives are publicly funded for that same Friedrichshain-Kreuzberg district, purpose. Seven hundred flats were acquired through the Administration’s that way from 2017 to 2018 in his district alone, pre-emption rights raising the percentage of affordable housing from 25% to 27%. 73 The social argues that it is a constitutional movements’ most measure according to various notable initiatives legal studies, as the German Magna Carta considers that In addition to the measures private property also “has to launched by the Administration, be put at the service of the civil society has been the common good”. driving force behind several It will be up to people of campaigns championing the Berlin themselves to decide right to housing. Florian Schmidt whether these companies are explains that one of the most expropriated, in a popular vote notable of these is the initiative in 2020. If they vote in favour of to expropriate Deutsche Wohnen the expropriation, as many polls and other similar companies, suggest, the Berlin government majority owned by large will have to apply this measure, international investors, that have which would affect close to a large housing stock at their 10% of the city’s housing stock disposal in the city, “through (some 200,000 flats). which they aim to maximise their financial profits, without attending to the common good”. The 200 Häuser initiative aims to combat the subdivision of dwellings into several flats to be sold off for Berlin’s residents will decide by popular vote in 2020 maximum profit whether to expropriate close to 200,000 flats from large A second initiative, 200 Häuser property companies (200 houses), focuses on combating house subdivisions Schmidt explains (horizontal divisions). Schmidt that these companies explains that many landlords had been expanding their are currently putting pressure property holdings a decade on tenants to move out of ago, buying state-owned flats their houses, so they can then that were for sale at the time. subdivide their properties into “It was a mistake made by the several flats and maximise State itself”, maintains Schmidt, their financial yield. In many for whom this initiative is an cases, the argument used by opportunity to recover dwellings landlords for breaking leases is for the community. He also that they or members of their BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD family personally need to use the property (one of the exceptional grounds for early lease terminations in Germany, which are generally open ended). But this is merely a pretext for forcing out tenants and afterwards carrying out their true aim of subdividing their properties. “This is one of the issues causing the most confrontation”, reports the Head of Housing for the district in the centre of Berlin, where 28% of residents already live in subdivided buildings. In fact, Schmidt warns that, after rent regulation was strengthened, this is “the only business channel” left for the property sector: dividing up buildings to then sell the houses to the highest bidder. Here he recognises that “there has been no regulation” so far to halt this phenomenon, against which he believes action ought to be taken. Berlin's goal is to ensure half its housing stock is public or owned by cooperatives within 30 years. The figure currently stands at 25% One of Berlin’s main challenges in the coming their children want to sell the building to years, according to Schmidt, is expanding the share out their inheritance. They then affordable housing stock, whether public- try and sell it to whoever pays the most owned or in the hands of cooperatives. While and that will normally be those aiming to these currently represent 25% of the city’s subdivide the building so they can sell flats, compared to the 75% which remain in off its various flats and maximise their private hands, the City Council’s goal is for financial profit. What we need to do is put half of the city’s housing stock to be public or a brake on this, by encouraging people cooperative by 2050. to sell their dwellings to the city or to To achieve this goal, Berlin will have to build cooperatives, and provide funding for half a million affordable dwellings through such transactions”. one of these two channels over the next Schmidt, in short, frames the need to three decades. Schmidt points out that bring rental price regulation into a more considerable public investment will be comprehensive strategy, to guarantee required both for building and for purchasing the right to housing, which depends too dwellings: “One scenario that crops up time on expanding the public and cooperative and time again, is that when an owner dies, affordable housing stock. 75 New York6.2 Some 8.4 million people live in New York 34% of their income on their rent, “a city and as many as 2.5 million do so percentage that has constantly gone in rental apartments. It is a city, then, up since 1965”, remarks Joffe. By with a high number of tenants and it contrast, she points out the positive should be pointed out that as many side, that the quality of dwellings has as 45% of its rental housing (close to been improving over time and that 1 million properties) have rent prices there have been fewer and fewer regulated by the public sector. The maintenance problems. city’s rental housing supply, then, is Lucy Joffe explains that New York has divided almost equally between the two separate systems for regulating rent free market and the regulated system, prices. The main one is rent stabilisation, according to Lucy Joffe, the Assistant which establishes a maximum price Commissioner for Housing Policy at limit, currently set at 2,733.75 dollars a New York City Council’s Department of month. Most dwellings regulated by this Housing Preservation & Development. system are in buildings with six or more In a city with an average family income storeys built before 1974, when the New of 60,762 dollars a year (5,064 dollars York State legislation that established a month), the average gross rent price rent stabilisation came into force and is 1,396 dollars a month (taking both which continues consolidating the regulated and de-regulated housing pillars of the system today. into account). 15 Prices in the private The stabilisation system also includes market have been sky-rocketing and the other, more modern buildings average is much higher, at 3,477 dollars a constructed with government month. 16 On average, people who live in assistance or with tax incentives for rental housing in New York spend some developers. New York city has a housing agency which issues its own bonds, so that various investors contribute to the funding of housing projects. Every LUCY JOFFE (New York City Council) private company that wants to receive the stabilisation system, funding through this channel has to with a maximum rental enter the stabilisation system. That price limit of 2,734 dollars a means having a large infrastructure, month, is the main channel only available to state cities on the scale of New York. for regulating rent BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD The second rent-regulation system, currently in decline, is rent control. It only covers apartments that have housed the A city with a long history same tenants continuously since in rent regulation, at the before 1971. According to data from 2017, there are 20,000 rental forefront in the apartments regulated under United States this system in New York, most occupied by elderly people on New York is one of the North low incomes. There are fewer and American cities with the longest fewer apartments in this situation tradition of rent control. The first in this North American city and, price-freezing systems in the US “on leaving this system, dwellings go back to the inter-war period of usually enter the stabilisation the 1920s. Rent control continued system”, explains Joffe. to be strengthened during the Second World War, as were the local authority’s powers to enforce it. But once the war ended, these control measures began to weaken in most North American states, except in New York where they remained effective, under strong social pressure, until the start of the 1960s. 10 Following a period of further rental market deregulation in the mid-1960s, strong social pressure once again managed to restore rent control in leases. New York’s municipal Lucy Joffe, Assistant Commissioner for government was initially Housing Policy at NYC Department of Housing Preservation & Development, at the more inclined than its state Rent Regulation Conference held at ICAB. government to regulate rent prices and the issue became the subject of a dispute between the The Emergency Tenant two authorities. Protection Act of 1974, The state government ultimately the basis of the rent ended up approving the stabilisation system Emergency Tenant Protection Act in 1974, regulations that established the parameters for regulating rent all around the state, under a second-generation 77 JOFFE: pro-tenant measures have owners to dodge the regulation system. been launched since 2011 “to That resulted in the loss of 291,000 reverse more than 25 years of apartments from the rent stabilisation accumulated regression” system since the mid-1990s. Various reforms were approved from then until well into the 21st century, to the advantage of property owners and stabilisation model, which the various at the expense of tenants. The turning cities within the state could resort to. point did not come about until 2011, It was adopted by New York, Nassau, when the first pro-tenant measures Westchester and Rockland Counties. At began to be launched, “to reverse the same time, the Act was implemented more than 25 years of accumulated through the regulations established regression”, explains Lucy Joffe, under the Rent Stabilization Code. 17 Joffe pointing out how it was only recently, in explains that the regulations provided 2019, that the most important reforms for a review every 4 years and that the were embarked on, as we will discuss changes made and applied “have tended below. to be more favourable to landlords under conservative governments and more favourable to tenants under progressive governments”. In fact, the neoliberal wave, headed by Some 291,000 Ronald Reagan in the United States, led to a weakening of rent regulation in the rent-stabilised 1980s and 1990s. It did not disappear in dwellings have been New York city but it did become much lost since 1994 more lax. Numerous exceptions had been approved since 1994, allowing BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Key features of the rent stabilisation system The first factor that has to be designing public policies or for social taken into account is that the rent movements or pressure groups calling stabilisation system cannot be applied for improvements in this area. in just any context. According to the state regulations, it can only apply in a housing-emergency situation, Every three years which is understood to be when there an official survey is is an insufficient supply of rental conducted, which housing available (vacant). This level is considered insufficient when, out determines the vacancy of the total rental housing stock, rate of rental apartments less than 5% is available for renting. and examines the state of Joffe points out that, “if this 5% were the city’s housing stock exceeded, the stabilisation system would disappear”, but that, in New York’s case, this rate “has been at The survey sample, representative of the about 3% since the 1960s”. city’s entire housing stock, is currently The city’s local regulations establish made up of some 19,000 apartments the need to conduct periodic housing and the possibility of raising that surveys, to monitor and determine, number to 30,000 is now being studied. among other things, the number of The Assistant Commissioner for Housing vacant dwellings at any time. This Policy at New York City Council explains is the New York City Housing and that the methodology followed is based Vacancy Survey (NYCHVS), which on personal interviews and building is conducted every 3 years, under a observations. If dwellings are occupied, collaboration agreement between interviews are conducted with people of New York City Council and the United reference with community knowledge, States Census Bureau. who can provide key information on all the occupants. In the case of empty Note that the survey is of critical apartments, key informants, people importance to ensure the smooth who know about the situation of the running of the rent stabilisation properties, are also sought out for system. Implementation of the interviews. stabilisation system is dependant on the data provided on vacant rental The survey contributes information apartments in the city. What is more, not just on the apartments available it should be borne in mind that it is for renting but also on the situation the United States’ longest running and features of the dwellings in various survey, dating back to 1965, and neighbourhoods, as well as the utilities it therefore enables comparative at their disposal. “We are also studying analysis of the city’s housing data the possibility of incorporating new over time. According to Joffe, “it’s a questions on accessibility and mobility benchmark source of information” also of individuals in the dwellings and on for the people dedicated to housing the needs of people with functional research, for those tasked with diversity”, explains Joffe. 79 How do dwellings enter the regulated system? To determine the rate of If the stabilisation system is As we remarked above, once apartments available for renting, to be applied, then it is also the rent stabilisation legislation we should note that this concept essential to decide on the was passed in 1974, dwellings does not include every flat in the criteria for updating the prices constructed before that year city that is not occupied (or which of regulated rental housing. In and inside buildings with six or is vacant). It does not include New York’s case, the body that more storeys were now under apartments that are already decides how prices develop the regulated system. being rented — because landlord annually is the Rent Guidelines Joffe explains that, to expand and tenant have already reached Board (RGB), which is made up of the stabilised rental housing an agreement or have signed a nine members: two representing market, since that time “a lease— but which have not yet landlords, two representing number of affordable housing been occupied; or properties tenants and five representing programmes have been tied to that are awaiting renovation or city residents in general. To the system”. So, for example, alteration work. Also excluded determine the annual variation to be eligible for certain tax from this concept are rental in prices, the body takes various exemptions for carrying out apartments for recreational, housing indicators into account, major alterations or renovations, seasonal or tourist use; or vacant but its overall decisions are the dwellings will have to enter apartments that have been sold result of assessing the interests the regulated system. Tax but are yet to be occupied by and points of view of landlords exemptions are also provided their purchasers. and tenants. The criteria that are for building new dwellings with Therefore, to further narrow therefore applied are “essentially the same goal. Owners must down the concept defined political”, assets Joffe. guarantee that their properties by the rate, we can consider “The annual increases decided remain in the regulated system that what it calculates is the by this body's votes have for at least 35 years. New York proportion of vacant dwellings historically been around 3%”, City Council also has various that have not fallen into she explains. loans and subsidies available disrepair (for one of the above for carrying out renovation reasons) and are available for work which are tied to the rent. The official English term stabilisation programme. here is Vacant Non-Dilapidated The number of dwellings under Units Available for Rent. The the stabilisation system has been rate is calculated by dividing growing while the number of these dwellings by the city’s rental apartments under historical total housing stock, which regulation systems, such as rent also includes occupied rental control, has been dropping. housing and non-dilapidated rental apartments. JOFFE: reference prices are updated based on “essentially political” criteria, balancing landlord and tenant interests BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD How do dwellings leave Also in 2003, a reform was approved, the regulated system? linked to preferential rents, which involve lower prices than those established One of the main exit channels for under the stabilisation system, through dwellings from the stabilisation system conditions agreed between landlords was vacancy decontrol, from its and tenants. Lucy Joffe explains that approval in 1994 to the recent reform of what a priori ought to be advantageous lease legislation brought about by New for tenants, in paying lower prices, York State in 2019. Joffe explains that became a real “hobbyhorse” for the this clause enabled landlords “to take Administration. Since the reform of an apartment out of the stabilisation 2003, tenants with preferential rents no system where its price came close to longer had an assured tenancy, or rather, 2,700 dollars a month and it remained their right to renew their tenancy was vacant”. Apartments could also leave not guaranteed. That meant that tenants the system where they were occupied were unprotected when it came to sharp by family units with an income in price rises once their leases expired. excess of 200,000 dollars a year. This is known as luxury decontrol. On the other hand, dwellings can also leave the regulated system where Vacancy bonuses were approved in they undergo extensive alterations or 2003, enabling rental prices to increase their use is changed from residential by 20% where a new tenant rented to commercial or professional. a dwelling under the stabilisation Dwellings would likewise fall outside system. According to a study from the the system where they were in a poor Community Service Society of New state of repair, were demolished or York (CSS), the implementation of permanently abandoned the rental these bonuses caused up to 48% of the market for other reasons. total rent-price increases under the stabilisation system from 2011 to 2014. 10 Another case is that of dwellings which enter the regulated system through a tax incentive for a specific period and which then leave it once that period lapses. Finally, apartments are also allowed to leave the rent stabilisation system where they are allocated to housing alternatives, such as those known as condos and co-ops in the United States: two cooperative forms of housing that differ over issues relating to structure of ownership, funding options, prices, rates, etc. 81 Profile of rent-stabilised housing tenants The representative from New York City Council insists on distinguishing the rent stabilisation system, which acts on free-market prices, from public- housing systems, which are run directly by the Administration. In the case of the stabilisation system, “there is no need to meet income criteria to access housing”, in other words, any city resident can choose this option. By contrast, “to access public housing programmes, tenants are required to have a certain level of income”. Of course, in practice, the stabilisation system guarantees the right to housing for many people who would otherwise be unable to afford private-market rent prices and who have not had access to a public apartment either. Note that the volume of housing under the stabilisation system (close to 1 million dwellings) is far JOFFE: higher than that for public housing ”People who live (close to 180,000). ”In general, people who live in housing under the in dwellings under stabilisation system tend to have the stabilisation a more vulnerable profile than the system tend to have general population”, explains Joffe. a more vulnerable Among those living in such housing, profile than the “there is a higher proportion not general population”, just of people who are on very low incomes or unemployed but also but income criteria elderly people, adults living on their are not required to own with a low level of education or access them who come from abroad”. For many of these people, paying rent, even at a regulated price, involves very considerable financial effort. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD The advantages of the stabilisation system As well as setting a price cap, Joffe points out, the stabilisation system incorporates other Another advantage for tenants is that rent “equally important” aspects for championing regulation caps the amount they need to put tenants’ rights which would otherwise remain down as a deposit, which can be a barrier to unprotected in the free market. “Tenants of accessing housing, especially for people on low dwellings under the stabilisation system are incomes. entitled to renew their lease” and landlords can only refuse this under certain circumstances, In addition, the rent stabilisation system for instance, if the tenant has breached the provides a regulatory framework enabling lease conditions. It is therefore a regulation tenants to safeguard their rights and protect that provides affordability and themselves in the face of price rises, termination stability at the same of irregular leases and property- time. mobbing situations. Rent regulation also JOFFE: Thanks to the regulation, tenants makes its mandatory “Tenants are legally are also guaranteed, to a much for landlords to greater extent, the right to maintain certain entitled to demand a information. For example, they quality standards with reduction in their rent can request information on the regard to services price” where landlords history of an apartment they wish and living conditions do not maintain the to rent, to find out the amount in the dwellings they quality of their dwelling that previous tenants had been rent out. In fact, if they paying, and all the details of any fail to comply with their renovations and improvements legal obligations here, carried out leading to price “tenants are legally increases. entitled to demand a reduction in their rent Their legal protection is also better, as the price”. regulations guarantee tenants the right to Landlords are also under an obligation to receive free legal assistance when they need register their rent-stabilisation apartments annually with the state housing agency, under the Omnibus Housing Act of 1983. “Failure to comply with this obligation leads to a fine which, if unpaid, can result in further Tenants can also restrictions being imposed on the landlord in access free legal future rent-price increases”, explains Joffe. assistance 83 A programme featuring tax advice, aid and exemptions is offered to property owners it, to defend their rights in wishing to enter the disputes with landlords. stabilisation system As for landlords, the legal obligations the stabilisation system entails also come with a series of advantages or incentives, as Joffe explains. For example, they are offered advisory programmes if they are interested in accessing the stabilisation system and are able to benefit from tax exemptions, loans and subsidies for alterations and renovations to A mechanism against their dwellings for this purpose. neighbourhood gentrification that Besides the direct advantages that the promotes social cohesion rent stabilisation system has for tenants and landlords, it offers benefits on both neighbourhood and city levels. Rent stabilisation helps to combat gentrification and, as a result, the expulsion of people with lower purchasing power and their relocation to other areas of the city with more affordable prices. This therefore helps to prevent and contain phenomena such as homelessness. Stability in housing tenancy is also beneficial for social cohesion and integration, by enabling people to live in the same home for a long period of time and strengthen their ties with the neighbourhood. 10 BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD The reforms of 2019 combating the “loopholes” in the stabilisation system which went against tenants Various reforms were approved in 2019 to combat the various legal loopholes that had been undermining the rent stabilisation system, by limiting prices increases above the rates established for renovation work and eliminating some of the above-mentioned measures, approved between the mid-1990s and start of the 21st century, to promote the interests of landlords. During her talk, Lucy Joffe mentioned some of the main measures approved, which are listed below: 1. It eliminates vacancy decontrol. models), they can then leave the Rental apartments can no longer stabilisation system. leave the rent stabilisation system 6. What is more, it puts an obligation if they remain empty and exceed a on the Administration to inspect at certain price cap (up to 2019, set at least 1 out of every 4 buildings and 2,733.75 dollars a month). apartments where major alterations 2. It eliminates luxury control. Dwellings have been carried out, to verify cannot be deregulated where the whether the work justifying the rent- income of the people living there price increase was properly performed. exceeds a specific level (up to 2019, 7. Landlords are fined if they fail to set at 200,000 dollars a month. register rent-price increases of 3. Gone now are vacancy bonuses that apartments with the agency in enabled rent-price increases by 20% charge of the stabilisation system. where a new tenant rented a dwelling 8. Measures have been approved to under the stabilisation system. strengthen the protection of elderly 4. Landlords must maintain people or people with functional preferential rents for tenants while diversity regarding the conditions of they continue living in the dwelling. their leases. In other words, tenants can renew 9. The amount that can be required for leases at the same price and are not deposits from new tenants has been exposed to abusive price rises. limited. Deposits must not exceed 5. Price increases above regulated the equivalent of one month’s rent. levels are restricted, in the case of “They are important measures for general building alterations (major closing the loopholes” that enabled capital improvement) or apartments landlords to dodge the stabilisation in particular (individual apartment system’s restrictions, Joffe points improvements), both in quantity out. In addition, to ensure continuity and frequency of application. In over time, Joffe adds, the clause was addition, there is a limit to the type removed which made it an obligation to of alterations that can fall under review the contents of the regulation either of the two above categories. If every 4 years. The goal: that, from the alterations are very substantial now on, counter-reforms undermining or the dwelling is turned into condos tenants’ rights cannot be applied. or co-ops (cooperative housing 85 Paris 6.3 Some 52% of households in the The bases of the current rent- French capital and its surrounding stabilisation system in France go municipalities, the Paris Agglomeration, back to the reform of the Urban live in rental housing, 28% private and Leases Act passed in 1989, during the 24% social and public. These are data presidency of François Mitterrand, from the Paris Agglomeration Rent which has undergone a succession of Observatory (OLAP), for the area which reforms since that time. Nevertheless, is currently home to 10.7 million people. regulation systems in France, as with those in Germany and the United States, date back to the start of the The average rental 20th century and started with price price in Paris is 1,165 freezes, before more recently adopting euros a month stabilisation systems. More specifically, Paris is estimated to Measures for have more than 380,000 free market promoting affordable rental dwellings. The average rent rental prices price in the French capital in 2019 was 1,165 euros a month (23.3 euros/m2), To understand how rent prices are higher than the 960 euros of the Paris currently regulated in Paris we need to agglomeration (18.3 euros/m2). This is go back to 2012. This was the time when according to the latest data available the first of two measures, still in force, from OLAP (July 2019). was approved with this aim. This measure This is why, over the last few years, limits changes to the rental price when a Paris City Council has been leading the lease for a flat is renewed or a flat is let to demands to step up rent regulation, another person. In such cases, the price which falls to the State to legislate, in developments follow the same criteria addition to launching social housing that they had during the lifetimes of policies. Ian Brossat explains that previous leases: they are limited by the 104,000 new social dwellings have IRL (Rent Reference Index). been built in the city since 2001. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Two years after this measure came into force, in 2014, another Act was passed, known 17 Following the repeal of The first measure as ALUR , which amended the Lease Act of 1989, adding this measure in 2017, limits rent price a complementary system for the ELAN Act passed rises to the rate of regulating rent prices, which in 2018 re-established inflation, even when came into force in Paris in 2015. the measure for the tenants change Up to then, the rental price of capping rent prices, a flat was regulated during the but is valid for a limited lifetime of its lease and between period of 5 years leases, but without any cap on The Rent Reference Index, price rises. What the ALUR Act which is equivalent to the not in keeping with the legal does is set this cap, based on consumer price index, excluding system as it applied solely the reference prices (average rent and tobacco, is an annual to one municipality and not prices observed for comparable indicator defined by the INSEE throughout the entire Paris dwellings), and determines (National French institute of Agglomeration. Of course, that prices do not rise above Statistics). Brossat explains that the restriction on rent-price these by more than 20%. The the index “serves as the basis revisions in force since 2012 reference price plus 20% is for reviewing the rental price of continued to operate. what is known as loyer majoré vacant and furnished dwellings (increased rent) and its amount It should be noted that in June and sets the cap on annual is set annually by decree. 2019, France's Council of State rent rises that landlords can recognised the legality of the ask for”, except for the oldest This would be the system most price-restriction measure, leases which are governed by comparable to Germany’s, where contrary to the ruling of the legislation from 1948. rent-price restrictions on the basis Paris Administrative Court of a price reference system is the In practice, this means that new two years previously. But main regulatory mechanism. By tenants pay the same as their during the period between the contrast, the role of this system in predecessors. The measure had abolishment of the ALUR Act France “is subsidiary to the main already been provided for by the and the ruling from the Council updating mechanism, which is Act of 1989, but had never been of State, another piece of where rent increases follow the implemented, and contains a legislation, known as the ELAN evolution of the IRL”, according number of exceptions that enable Act, was passed in November to a report from the Metropolitan a “progressive rise in manifestly 2018, re-establishing rent- Housing Observatory. undervalued rental properties up price restrictions, but only to a market level”, according to The rent price cap in France for a limited period of 5 years, a comparative study conducted from the ALUR Act remained on the understanding that on rent regulation in Berlin and in force up to November 2017, an experiment was being Paris from 2017 to 2018 prepared when it was abolished by the conducted to check the results by the Metropolitan Housing Paris Administrative Court of this measure. Observatory (O-HB). 13 on the grounds that it was The second measure sets a cap on rent prices, based on average reference rent prices which can only be exceeded by up to 20% 87 IAN BROSSAT (Paris City Council) “The city of Paris had expressed its desire to have a permanent measure in place” Despite the positive assessment of Regarding the ELAN Act, Brossat also the re-establishment of this measure, highlights the fact that it establishes Ian Brossat, the Deputy Mayor fines for landlords that fail to comply of Paris in charge of the Area of with the restrictions on prices (capped at Housing and Emergency in the French 5,000 euros per natural person and 15,000 capital, criticises the limitation of its per legal person) and that it is up to the implementation to 5 years: “The city of State to define its methods of application. Paris had expressed its desire to have a According to the Paris Councillor for permanent measure in place”. Housing, this can contribute to the Brossat also underscores the fact effectiveness of the measure depending that this rent-price restriction is on how it is applied: “Assessing how these not applicable to every situation. fines are applied will enable us to measure The ELAN Act of 2018 sets out four whether or not they work as a deterrent criteria to enable the city to demand based on the number of fines issued and its implementation by the State. First, their relationship with the amount by an important gap between the level of which landlords have exceeded the cap”. private-market rental prices and the pubic and social rental housing stock. Until the repeal of Second, a high average rent level. the price cap, rent Third, a low rate of new leases signed, prices stabilised in compared to the rate of the last five Paris between 2015 years; and fourth, limited prospects for and 2017 the production of and growth in number of leases registered with the local housing programme. “The city of Paris Brossat does not believe the measure can demonstrate that its territory meets has been in place sufficiently long for its these four criteria”, Brossat explains. effectiveness to be assessed, despite what is known of the precedent from the Which is why, soon after the ELAN period that the ALUR Act was in force in, Act was passed, Paris City Council between 2015 and 2017. According to data called on the State, as the authority from Paris City Council, those three years with jurisdiction over the matter, saw rent prices stabilise compared to their to implement the price-restriction sharp rise (50%) in the previous decade measure in the city immediately. That (2005-2015) and, following the Act’s same measure is currently in operation suspension, they rose again, by 3% in 2018. in the city of Lille as well. It remains to be seen whether the rate at which prices rise will slow down from now on. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Stable tenancies BROSSAT: Up to now we have been describing “The legal system for the measures for slowing down the growth of rent prices and ensuring the short-term lease of their affordability. We shall now furnished dwellings is no explain how the duration of these more permissive than it leases is regulated. has been for long-term Unlike Germany, leases in France are leases” since 2014 not open ended, although landlords are under an obligation to renew them home. when they expire, except in a limited number of exceptions regulated by legislation. So then, although leases are If a landlord wishes to end the lease for formally temporary (with a minimum a flat which is home to someone over term of 3 years, where the landlord is the age of 65 on a low income, they may a natural person, and 6 years. where a only do so where they can guarantee legal person), in practice the stability alternative accommodation for their of a tenancy is guaranteed. If they have tenant. If a landlord intends to terminate not opted directly for a system that a lease on false grounds, they can be provides for open-ended leases, this is fined up to 6,000 euros where they because it would be incompatible with are a natural person (and up to 30,000 landlord rights under the French Civil euros where they are a legal person). In Code, as explained in the report from the addition, their tenants can demand they Metropolitan Housing Observatory. 13 make good any damage or loss caused. With the exception of such cases, leases have to be automatically renewed and Leases in France are not this can be done in two different ways: open ended, although they by tacit renewal and by lease renewal. are automatically renewed, apart from a few exceptions Ian Brossat explains what tacit renewals involve: “If neither of the two parties (landlord or tenant) informs the other, The only exceptions when a landlord according to the administrative and can refuse to renew a lease is when legal methods provided for under the the landlord needs the dwelling as a lease, of their wish to change the terms main residence for themselves or their of the lease or terminate it, the lease is family members or they wish to sell automatically renewed under its initial the property. In the latter case, when conditions and for the term provided for notifying a tenant that their lease will not under it”. The new leases’ terms are the be renewed, landlords must inform the same legal ones as in previous leases (3 tenants of both the price and terms and years or 6 years depending on whether conditions of the sale of the property, as the landlords are natural or legal persons, tenants enjoy pre-emption rights should respectively) and their prices also rise they be interested in purchasing their 89 in accordance with the reference rent subsequently occur, the lease would price index (IRL). then continue, with a 3-year term. As for the second method, lease There are also certain exceptions renewal, this applies in cases where for furnished dwellings with regard rent prices are manifestly below the to length of tenancy. The ELAN Act level of the private market prices for of 2018 creates the new category leases in the same area. As explained of “mobility” lease for furnished in the report from the OHB 13, landlords dwellings, to adapt them in a flexible in such situations may request a way to the needs of people staying in revaluation of their rent prices, which a locality for brief periods, exclusively have to be progressively applied for the for professional or academic purposes. duration of their new lease (by dividing These are leases with terms ranging the total amount of the increase by from 1 to 10 months, which cannot be the number of years of its term, 3 or 6 renewed for the same tenant. years). This protects against sudden Generally speaking, the regulation of price rises in leases. furnished dwellings has been steadily The lease renewal method also takes approaching the level of unfurnished account of tenants’ rights, on the one flats over the last few years. Until hand, by limiting the price-revaluation the ALUR Act was passed in 2014, level, which cannot be undefined. On the owners of furnished dwellings the other hand, it should be noted that enjoyed more favourable conditions any request for rent-price revaluations than owners of unfurnished dwellings, must not be linked to any refusal to because they were exempt from the renew leases. This protects tenants application of the Lease Act of 1989. from the threat of their landlords The Paris Councillor for Housing, terminating their lease to raise the Ian Brossat, explains that this has rental price of their property. changed over the last few years: “The In addition to the general rules legal system for short-term leases governing the duration of leases, of furnished dwellings is no more there are also special cases where permissive than it is for long-term the term may be shorter for justified leases. In addition, in the case of reasons. For example, shorter-term furnished dwellings, the legal system leases of a minimum of one year may is now very similar to the system for be offered where a landlord can prove they need the dwelling for family or professional reasons in the short term. If the circumstances justifying the recovery of the dwelling are delayed, the termination of the lease may be postponed, but only once. If they do not BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD unfurnished dwellings since “In response to the rise in the the ALUR Act was passed Airbnb phenomenon, in 2011 in 2014 and the ELAN Act in and 2012, various acts were 2018”. passed to step up the control of tourist apartments run by The ALUR Act only provides a few rental companies”, explains the exceptions for furnished flats. Paris Deputy Mayor for Housing For example, they may charge Policies. Since then, it has been a two-month deposit and the mandatory to register tourist minimum term for leases may apartments, which are allocated be 1 year instead of 3 years. a licence number that has to be Of course, landlords are also included in any announcements under an obligation to renew the published. Any flat that is not leases, except in exceptional a main residence (occupied cases, which are the same as for for at least 8 months a year), unfurnished housing. is deemed to be a short-term To ensure owners of furnished let apartment (whether or dwellings comply with these not it is a tourist let) requiring regulations, Brossat believes authorisation to be used as such. greater control is necessary: In addition, in the case of tourist “The difficulty lies in the apartments, owners are under an practical application of stricter obligation to provide information regulations which are very often on the number of nights the not respected and which require dwelling is let each year (the monitoring and legal action”. maximum permitted number is 120). Failure to comply with these “In response to the rise obligations leads to fines. BROSSAT: in the Airbnb phenomenon, in Looking to the future, Paris City Council has proposed measures to 2011 and 2012, various acts further strengthen this regulation, were passed to step up the for example, by banning platforms control of tourist apartments” such as Airbnb from operating in the centre of Paris, where 26,000 homes were lost in the last few years while the number of tourist apartments rose, according to Furnished dwellings also the declaration made by the include tourist apartments, city's Mayor, Anne Hidalgo, in a phenomenon on the rise September 2019. This, however, in Paris, as in many other requires authorisation from the European cities. Which is why, State government. Brossat explains, Paris City The city continues to demand Council has stepped up its greater autonomy and a greater regulation of tourist apartments scope for action to carry on over the last few years. combating all the factors that have been undermining the right to housing.  91 Vienna6.4 The Austrian capital, where close to 2 Boasting 220,000 public flats, Vienna million people currently live, has become City Council is de facto one of the a housing-policy benchmark throughout world's main housing owners, with a Europe. What characterises the municipal agency (Wiener Wohnen) Viennese model overall is its extensive to manage the administration and social and affordable housing stock, maintenance of its housing stock. representing 45% of all the city's flats. Thanks to this extensive housing stock belonging to the Administration or limited-profit housing cooperatives SUSANNE BAUER and companies, up to 60% of the city’s (Vienna City Council): residents live in social or public flats. “Vienna is the What is more, the introduction of these European capital dwellings in the city’s various areas is also a factor promoting social mixing of social housing” and community life among various population profiles. This can be seen on Vienna City Council’s social housing website (Wien Social Housing). “Vienna is the European capital of social The vast majority of the public and housing”, affirms Susanne Bauer, social dwellings are rental housing. a researcher at the Department of Susanne Bauer points out how rental Research in Housing at Vienna City culture is deeply rooted in the Austrian Council (Wiener Wohnbauforschung). capital. “Vienna is a tenants’ city, even This department is dedicated to though there is a higher percentage of analysing the city’s housing needs owners than in the more rural towns and promoting urban renovation and and areas”, she explains. In total, 78% of innovation in the quality of properties, the city’s 1.1 million dwellings are rental. above all in technology and energy As in the rest of Austria, the city’s efficiency, among other areas. leases are permanent. The city has 420,000 social and affordable dwellings. As many as 220,000 are owned by the City Council and a further 200,000 belong to limited-profit housing associations. BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Bauer attributes Vienna’s leading position in housing policy to its long history in this matter. “Social housing policies first began to be implemented in the city over a hundred years ago”, she states. The origin of these policies goes back to the late 19th century and early 20th century, when the aftermath of the country’s industrialisation process, which unleashed waves of migration to large cities such as Vienna, brought about housing needs. To meet those needs, the first limited-profit housing associations were created and the first public- housing policies subsequently implemented. Bauer adds that, unlike many other European BAUER: cities, “Vienna’s municipal government has “Vienna’s municipal never sold its public housing stock, which has never been privatised”. This historical legacy government has never is what puts Vienna at the helm today. Given sold its public housing that a quarter of the country’s population of 8 stock, which has never million lives in Vienna, its housing policies also influence those of the rest of the country. been privatised” “Historically, most of the affordable dwellings had been publicly owned, but this has changed over the years and more and more now belong to limited-profit housing associations”, Bauer adds. She explains that Limited-profit housing limited-profit housing associations build close associations (LPHAs) to a third of Austria’s “are regulated by dwellings state legislation that sets out their rights and obligations”: the 93 Limited-Profit Housing Act. investment in housing is She explains that the profits made through loans. In fact, from these associations “are The City Council Austria allocates 0.3% of its limited and part of those profits authorises funding GDP to housing, a percentage have to be re-invested” in for companies and 4 decimal points above the renovations, land expenses European average, according and the construction of new cooperatives for to data from the Federation dwellings. The associations affordable-housing of Limited-Profit Housing are also under an obligation to projects and, in Associations. guarantee an affordable rent exchange, limits The loans are awarded by in accordance with established their prices regional governments and, rates (currently 7.5 euros per although each of them has its m2 in Vienna). In exchange for own particular features, they these limitations, the housing are generally very low interest associations are exempted from Besides managing land, the loans (at around 1%), which the equivalent of corporation tax. foundation also organises both limited-profit housing What is more, they have access to competitions which the various associations and private public funding for their housing public and private companies, providers can apply for and projects. such as LPHAs, are required which can be paid back over a to enter when they want to Such associations have period of 35 years. Besides the build affordable dwellings. The built over a million dwellings 35% funded by public loans, the researcher Susanne Bauer throughout the country since rest of the dwellings’ funding points out that candidates enter the end of the 19th century. comes from bank loans, the their social housing projects They currently produce 15,000 developers themselves or from in the competition, and these dwellings a year, representing contributions from the tenants are assessed by a jury based between 25% and 30% of themselves, according to the on criteria such as social all flats built in the whole of Wien Social Housing website. sustainability, architectural Austria. There are presently features, energy saving and 185 limited-profit housing economic costs. The aim is associations in operation, of to use the competitiveness which 98 are cooperatives and between the various companies 87 no-profit companies. In all, to incentivise innovation and they manage over 920,000 quality in their housing projects. properties, 70% of which are rental and 30% owned, The winning team can opt according to data from the to buy the land where the Austrian Federation of LPHAs. dwellings are to be built at a set price. In addition, the Vienna has had a specialist Administration also awards foundation since 1984 for them loans for funding up to managing land where public 35% of the entire building costs. and social housing is built. In return, housing developers This is the Vienna foundation have to guarantee affordable for managing land and urban rent prices. renovation (wohnfonds_wien), which currently manages up to One of the main features of the 2.8 million m2 of land, according to Austrian system is precisely the Wien Social Housing website. this, that most of the public BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD Regulating the private rental The regulations governing rent prices in Austria market at present come from state legislation: the Tenancy Act. Since 1994, this has been based on Private market rent prices have a system which puts a cap also been affected by the fact on rent prices. This cap is that public and cooperative BAUER: defined on the basis of dwellings represent almost half “Regulation needs several criteria: the date of of the city’s housing stock. “We construction of dwellings, to be stepped up for have had some influence on the their size, their land private market, by lowering their the most modern value, the location of the rent prices, although the market and newly built buildings and apartments does have its own inertia”, the inside blocks of flats, dwellings” researcher Susanne Bauer their facilities and so on. points out. These rent-price caps vary according to the province. It should be noted that, besides the pressure from As Margret Funk’s report explains, one of the the public housing stock on free-market rent main loopholes in this price regulation system is prices, the private market is also subject to its own that it only affects dwellings built before 1945. regulation and lease prices cannot be without limits. A good part of the city’s housing stock was That is the explanation given in the “Rent Control in built before that date, which is why 1945 was Austria best practice and bad practice” report (2017) set as the temporary threshold for regulating by the University of Vienna lecturer and expert in lease prices, when the regulations were drafted. rentals, Margret Funk. 18 Today, however, this means that more and more Rent regulation in Austria goes back to the same dwellings are falling outside that system of era when the first social housing policies began regulation. According to data from her 2017 report, to be implemented, at the start of the 20th 226,000 of the 292,000 private rental dwellings century. According to Margret Funk’s report, rent prices were regulated for the first time in 1917, during the First World War, originally with the aim of protecting the widows and orphaned children of the conflict's fallen soldiers from exorbitant rent prices. After the war, from 1929 to 1931, the regulation’s conditions were relaxed in favour of owners. After the Second World War, however, from 1951 on, stricter regulations were brought in for landlords. Rent regulation currently generates broad consensus in Vienna, owing to the long history of this measure and affordable-housing polices overall. According to the above- mentioned report, up to 40% of Vienna’s voters declared in 2015 that they hoped their political representatives would not consider rent as a commercial asset and that they would guarantee its affordability. 95 were completely subject to rent regulation. The level contrasts with the city of Vienna, where remaining 66,000 were either only partially subject the Social-Democratic party has traditionally to or completely exempt from that regulation. The governed. This was the party of Michael Häupl, latter include residential buildings constructed the city’s mayor from 1994 to 2018, who was after 1968, although the Act does not protect succeeded by Michael Ludwig (in 2018). profiteering or exorbitant prices. Funk’s report also explains that there are dwellings governed by specific regulations. Environmental sustainability For example, large apartments (of more than in housing policies 130 m²) can be rented out at a higher price than the standard rate, though not without In addition to guaranteeing the affordability limits. Landlords can receive a “fair rent”, one of rent prices, by regulating them and above that is reasonable for the dwelling's features, all boosting the public and social housing something that requires endorsement from stock, Vienna City Council also aims to apply the authorities. There is also what is known as environmental sustainability criteria to its “right of succession”, which enables a tenant urban-planning and property-development benefiting from a very low rent to assign their strategy. lease, under the same conditions, to family The city’s population grew from 1.67 million to members, or at a price only slightly higher. 1.90 million residents between 2008 and 2019. The researcher Susanne Bauer believes rent To meet the growing demand for housing and regulation “is strong”, especially for the older establish its city model for the future, Vienna dwellings, but that “regulation needs to be has already adopted an urban-development strengthened for more modern and newly built plan with a 2025 horizon. According to the dwellings”. “We are not happy with this type Wien Social Housing municipal website, the of regulation. Unfortunately, there have been plan aims to combine urban-planning and no political majorities that have allowed any new-housing developments with renovations changes to the system over the last few years”, and green-space conservation. Environmental she bemoans. It should be remembered that criteria are being especially promoted, both in rent regulation depends on the state and that the building of new dwellings and in large-scale the last few years have seen Austria under a renovations, so energy-efficient buildings can coalition government between the conservative be constructed. ÖVP party and the far-right. Since the start of Vienna is thereby aiming to become a 2020, however, a government formula arose, benchmark city not just for its extensive social unprecedented both in Austria and the rest of and public housing stock,but also for the quality Europe: a coalition between the Conservatives and energy efficiency of its buildings.  and the Greens, which has just begun to operate. The political situation on the State BENCHMARK POLICIES IN EUROPE AND THE REST OF THE WORLD 07 Positions on rental price regulation 97 AGAINST The debate on rent regulation is highly politicised and, depending on the point GONZALO BERNARDOS, a lecturer in of view it is based on, can lead to very Economics and a property analyst: different conclusions. “Rent regulation through Several representatives from the caps would be a mistake, as it property and finance sectors as well would harm those it actually as from the academic world, from the aims to benefit” field of economics in particular, have expressed their radical opposition to rent regulation. One of their main arguments is that regulation would reduce the supply of leases and, A lecturer in Economics at the contrary to their objective theory, lead University of Barcelona, Gonzalo to a rise in prices. Another criticism Bernardos, believes that rent regulation raised time and again is that it would through caps would be “a mistake, as it undermine the quality of dwellings, would harm all those it actually aims to due to the lack of incentives for owners benefit”. In his opinion it would cause to invest in renovation works, as they “a reduction in the rental supply and would receive less rental income. an increase in demand, an imbalance By contrast, other social and political that would lead to a high oversupply, sectors and experts in housing believe to discontent and dissatisfaction that arguments such as these are among many wanting to live in rented neoliberal myths or dogmas without accommodation, to a large boost to any empirical evidence. There are the black market and to a sharp rise in also more nuanced or middle-ground prices in this market”. opinions, which are favourable or Bernardos adds that a regulation at least not wholly opposed to rent system, such as price caps, would regulation, even if they believe such a bring about a deterioration in the measure involves risks if not properly quality of dwellings. “If flats have little applied. profitability, their owners would not bother to carry out any work on them and their habitability would become This section offers a number of increasingly worse. Only families on testimonies and reports with various low incomes would be prepared to live positions on rent regulation. First, it in them. The middle classes would be explains the opposing voices and then pushed out of this market”, he asserts. the responses to their arguments from the champions of this measure. POSITIONS ON RENTAL PRICE REGULATION Bernardos, who is also the One of the main criticisms he If the Administration wants to Director of the Master’s Degree levels at putting caps on rent stop them from selling their in Property Consultancy, is that this does not provide dwellings and reducing the rental Management and Development for how dwellings would be housing supply, it should provide at the University of Barcelona, allocated in a context of a large them with tax incentives. Such points out that there is “historical oversupply: “If, for example, incentives would enable investors evidence” that demonstrates the we established a cap of 750 to obtain a minimum desired inefficiency of the rent regulation euros in many neighbourhoods, profitability on the one hand and system, cap models, in cities the number of families that the City Council to permanently where it has been applied. “It’s would opt to rent a dwelling achieve lower rent prices on the never had any success, not in in Barcelona would rise other”. New York, not in Berlin and not in enormously. How, then, would In addition to incentivising Paris. Why should it then triumph we allocate places to anyone investments in the free rental in Barcelona? It’s an ideological wishing to live in the city? market, Bernardos believes “two measure, lacking any support From my perspective, no one more markets need to exist: from economic science”, he acquires any rights just because one regulated and the other maintains. they already live in rented social. The first comes from He refers to the effects of the accommodation or were born public-private collaboration. freeze on rental prices applied in Barcelona. I am completely The land is public, the building, in Spain during the Franco opposed to discriminating ownership and management of dictatorship: “When buildings against anyone on the basis the dwellings is private and the were old, owners began to lose of where they live now or the prices and habitability conditions money from them, because municipality they were born in”. of the flats are determined they were unable to recoup their In his opinion, the key to lowering by the City Council. This also renovation costs through rent lease prices lies not in price guarantees a minimum annual prices. That was why, towards the regulation but in increasing profitability for the company that end of the 1960s and throughout the supply, by incentivising owns the property. The second the 1970s, many owners decided investments in rental flats. is social, for groups suffering to sell their properties. The result “Increasing the supply will raise from serious problems or at risk was a large reduction in the rental competition between owners of social exclusion. In that case, housing stock. In 1944, 83% of and prices will fall. Investors who the owner and manager is the properties were rented out. At the thought they would achieve a City Council. The price is zero or start of the 1980s, the figure had certain profitability see that it symbolic”, he concludes. dropped to around 20%”. is lower than they expected. 99 CATALAN COMPETITION AUTHORITY “A measure that can have the direct negative effect of reducing the rental housing supply is unlikely to be an effective way of improving accessibility” of increased demand with restricted supply The Catalan Competition Authority would lead to long waiting lists for access to (ACCO) also considers that rent regulated housing, as has happened in cities regulation could lead to a restriction such as Stockholm, after applying price- in supply. This is the assertion made in regulation systems. There the waiting list for its report on the Catalan government’s accessing a rental flat was 8.2 years in 2015, rental decree of 9/2019, which failed according to the ACCO’s report. at the parliamentary procedural stage, Professor of Applied Economics at the during which warnings were given of the Autonomous University of Barcelona, Miguel- risks of going ahead with it. Ángel López García, maintains that price The ACCO believes that rent regulation regulation “will lead to a steady deterioration would reduce supply in two ways: first, in quality of dwellings already built”. This is by forcing properties out of the rental the explanation given in the report entitled housing stock and into the private “Vivienda y política pública: objetivos e market; second, by disincentivising new instrumentos” [Housing and public policy: goals flats from entering the rental market, and tools] commissioned by the Estudios de especially those that could easily be Economía Aplicada Foundation (Fedea). rented out at higher prices than those Although owners may be disincentivised from set. Hence the following explanation: investing in maintenance, in not being able to “A measure that can have the direct recoup their costs through rent prices, the reverse negative effect of reducing the rental can occur with tenants. They may be more inclined housing supply is unlikely to be an to invest in the dwellings they are renting where effective way of improving accessibility”. they are given more legal protection. Of course, all It also warns that rent regulation can things considered, this may lead to the communal also lead to a rise in demand, given areas of a building being neglected, he warns, the “certainty of caps or of a particular and to private areas being in a better condition price range” which would be generated through action taken by the tenants themselves. among city residents. The convergence This context of restricted supply and increased demand, López García believes, would not only cause long queues for accessing regulated dwellings but also encourage MIGUEL-ÁNGEL LÓPEZ GARCÍA, discriminatory practices by owners. They professor of Economics: could, for example, choose their tenants “It will lead on the basis of factors such as race, religion, sexual orientation and lifestyles, to a steady in addition to income levels. deterioration in In addition, he also believes that, as the quality of the regulated dwellings would be aimed at dwellings that have the entire population and not just at the people who need them the most, it could already been built” lead to their being occupied by high- income families. POSITIONS ON RENTAL PRICE REGULATION BANK OF SPAIN “This policy can cause segmentation in the housing market, by focusing rent-control measures on certain groups or areas in the city” A recent report from the Bank of Spain, differences in place of residence of the compiled by the researchers David classes with greater and lesser purchasing López-Rodríguez and Maria de los Llanos power. Matea and published in January 2020, According to the report, “a regulation- also warns of the “adverse effects” of created reduction in net yield from rent regulation. Entitled “La intervención residential-renting investments would pública en el mercado del alquiler de lead to a drop in expenditure on rental- vivienda: una revisión de la experiencia housing maintenance and renovation, internacional”, [Public intervention in thereby reducing its quality over the rental housing market: a review time”. By contrast, it would incentivise of international experiences], the changes in “the composition of the report maintains that although public dwelling offered to evade regulation”. interventions in rent prices may have Another negative assessment is that positive effects initially, they are counter- regulation could have an adverse effect productive in both the medium and long on workers’ mobility, because of its aim term. to keep leases below market prices. According to the report, “this policy can cause segmentation in the housing market, by focusing rent-control measures on certain groups or areas in the city”. That, at the same time, would cause a “segmentation of the population based on their financial situations”, in other words, it would heighten the 101 Studies opposed to rent regulation The report entitled “Rent Matters: What are same dwelling, even when their circumstances the Impacts of Rent Stabilization Measures? have changed (for example, after changing job (University of Southern California, 2018) 11 and now working further away from their place examines several studies both for and against of residence), as a result of which they would rent regulation, based on the experiences of be depriving others in greater need of those several North American cities. The first of these dwellings from living in them. included a study from Diamond, McQuade Glaeser (2003) 21 also questioned the and Qian in 2018, 19 based on the case of San effectiveness of rent regulation for meeting the Francisco, which asserted that rent-stabilisation housing requirements of those most in need. systems incentivised owners to transfer their He believed low-income tenants would benefit apartments from the rental market to the sales from price regulation in the same way as the market or turn them into their own residences or middle-class or even high-earning population carry out renovation work on them so they would would. fall within one of the loopholes exempting them from price regulation. As for dwelling maintenance, other academic studies such as the one from Sims (2007), 22 That same study went further and concluded focusing on the case of Massachusetts, that price-regulation systems could contribute have established that chronic conservation to gentrification processes, as had occurred in problems of dwellings (holes in walls or in the San Francisco, and encourage landlords to evict floor, paint peeling off walls, insufficiently their tenants and convert their apartments into secure rails and so on) are more frequent condominiums, an assertion that has in dwellings subject to the price-regulation “ignited controversy”. system than in free-market apartments. Other studies, such as that of Glaeser and In sum, the studies against regulation warn that Luttmer (2003) 20 report how in 1990, 20% of it would reduce the number and quality of the tenants in New York were living in apartments lease supply in two ways: by disincentivising with either a greater number or fewer rooms the construction and renovation of dwellings for than they would in an unrestricted market. Like this purpose and by promoting the withdrawal some other experts, they believe that price of apartments from the rental market and their regulation encourages tenants to stay put in the transfer to the sales market. POSITIONS ON RENTAL PRICE REGULATION FOR JAIME PALOMERA, spokesperson for the Tenants’ Union: “There is no empirical evidence that rent regulation reduces supply” LUCÍA DELGADO, the PAH's spokesperson: The spokesperson for the Tenants’ Union, “It’s not true that prices Jaime Palomera, considers the assertion to will drop if supply goes up, be neoliberal dogma according to which rent just look at the property regulation reduces supply and pushes up prices and that the solution is to build more to boom years” increase it. In Palomera’s opinion, this is based on the “dogma according to which supply and demand are self-regulated because perfect- competition markets exist”, something he regards as “pure abstraction”. He believes markets are Lucía Delgado, the spokesperson for Barcelona conditional on the socio-economic context they PAH, believes the main argument used by rent operate in and do not function merely according regulation’s detractors is based on a fallacy. “It’s to mathematical criteria. not true that prices will drop if the supply goes up, just look at the property boom of the 1990s. We He attributes this “dogma” to the strong neoliberal built more dwellings that France and Germany did ideological consensus that developed in the 1980s. together and that was when the prices of flats for Here he criticises how the industry in the UK, sale were at their highest”, she recalls. the USA and France “has allocated considerable amounts of money to funding reports against rent Delgado believes it is essential to regulate rent regulation”. He points out that these reports have prices so as to guarantee “the right to the city” of no “empirical evidence that rent regulation reduces the people living there and to ensure they don't supply”. Nor do any of these studies demonstrate find themselves forced out of their homes and that regulation affects the quality of dwellings. neighbourhoods, as a result of gentrification processes. Delgado warns as follows: “We have to He turns around the argument used by detractors protect against the phenomenon of families having of this measure and refutes the assertion to move from one place to another, unable to live that deregulation serves to stabilise prices. where they want because of rent-price increases”. “There is historical evidence that the removal of rent controls in the 1990s triggered sharp Here she criticises the “showcase Barcelona” price rises and did not lead to greater supply in phenomenon designed more for tourists Massachusetts”, he concludes. temporarily staying there than for the people who live there all year round. In her view, a measure such as rent regulation can make a contribution to the “social cohesion of cities”. 103 JAVIER BURÓN, Municipal Manger of Housing in Barcelona: The Manager for Housing and Renovation “If the regulation were at Barcelona City Council, Javier Burón, points out a trap that most of the criticism applied, most of the property levelled against rent regulation falls into. market would attempt to He warns that such criticism refers to the comply with the standards old models of rent-price freezing, which established and adapt” established rigid price caps, and not to the modern, more flexible (second-generation) price-stabilisation systems. For Burón, the stabilisation system takes account of the interests of both landlords and tenants alike. MARIA SISTERNAS, architect and urban planner: He gives an example: “If a lease costing 800 euros a “Rent regulation has to month is profitable for a landlord and the cap is 10%, be implemented now that is, they can rent out their property for up to a maximum of 880 euros a month, I don’t understand and we cannot afford why 880 euros isn’t profitable when, five minutes to be debating it for before, it was. Well, maybe your expectation is to rent much longer” it out for 1,200 euros a month…”. Burón also rejects the view that applying the stabilisation system would lead to a contraction in supply of rental housing. He believes that families For the architect and urban or small property owners with a few dwellings planner, Maria Sisternas, “rent “would not stop renting them out”, if they could regulation has to be implemented continue receiving an income that improved their now and we cannot afford to quality of life. As for large property owners, with be debating it for much longer”. thousands of rental dwellings, he doubts whether She believes it is necessary to they could sell such large stocks of flats. “The guarantee lease-price affordability message they’d be throwing at the market would in both the short and medium term be I need to sell, I’m under pressure, I’ll be making and that social and affordable low offers and they’re not interested in selling their housing stock needs to continue properties at a lower price than the investment growing at the same time. they’ve made”. The same could be said of family She also points out that it is offices (medium-sized companies), which usually usual for flats in gentrified areas imitate the behaviour of large companies. to be revalued for reasons that Burón predicts that“if the regulation were applied, have absolutely nothing to do most of the property market would attempt to with their owners, not linked comply with the standards established and adapt to to their investments in home find the best possible space”. If the measure is to be improvements, but rather public implemented, he believes it is essential for the price investment in urban-regeneration scales established by the stabilisation system to be processes. adjusted and realistic, to prevent landlords’ profits It is her belief that we need to from diminishing or disappearing. “It’s a delicate “think about how to capture the operation, it has to be carried out carefully, with added value that the public sector very good data, although, in the short term, there brings”, so avoid incentivising will be no alternative but to do it, because it will speculative behaviour. She take many years and billions of euros to expand the believes that rent regulation can affordable housing stock. You can’t tell successive be useful in that respect. generations of people they have to wait until this solution arrives”, he concludes. POSITIONS ON RENTAL PRICE REGULATION Studies in favour of rent regulation Based on the experiences of price regulation in When rent-control measures were withdrawn North American cities, we also find studies that in the State of Massachusetts in 1994, rent reach opposite conclusions to those expressed prices in its cities went up exponentially. above and which highlight the positive effects As for the effects of regulation on rental of this measure. Research by Gilderbloom and Ye supply, that same study concluded that it was (2007),23 carried out in 76 municipalities in the not the measure itself that could reduce the State of New Jersey, concludes that stabilisation rental housing stock but rather the loopholes measures have not caused any significant permitting the avoidance of price restrictions variations in the construction of new rental in a few cases, for example, through renovation housing. This study takes account of the effects work. On this point, the report mentions a study of other social variables on the housing market conducted in San Francisco in 2018 highlighting (such as demographic changes, percentage how landlords had been taking their apartments of vacant and occupied dwellings etc.,) and out of the regulated rent system and carrying concludes that none of the variations can be out renovation work on them for conversion into attributed to rent regulation. Previous studies condominiums. Sometimes they even had their (Arnott, 1995; 24 Gilderbloom, 1981 25) had already apartments demolished to make way for newly concluded that variation in housing stocks constructed condominiums. depends more on local-economy cycles than on rent regulation or other determining factors. This is why other studies (Gorska and Crispell, 2016 27) also make the case for putting legal Other studies conducted in New Jersey and limits on such loopholes, for example, narrowing California not only suggest that rent-stabilisation down the cases where rental apartments can be systems improve the affordability of regulated sold off. They offer proposals such as banning apartment prices but also ensure that their effects the conversion of rental dwellings into flats extend to the entire housing stock. As soon as for sale in buildings of a certain size or limiting potential tenants can opt for a regulated dwelling, the percentage of flats in a block which can they can also decide not to pay significantly be sold off, or even requiring owners to bear a higher rent in the free market and that can cause significant share of the expenses tenants incur the prices of deregulated apartments to drop. As in having to find another dwelling. explained in a study by Glaeser in 2003, 26 this type of research shows that cities with regulation Note that these studies make the case for systems have 10% lower rent prices than cities limiting price-control exceptions, but not for without such systems. 26 eliminating such exceptions completely. They understand that enabling landlords to raise A report entitled “Rent regulation in New York rent prices above reference prices (but not City” (2019) 10 also warns that it is whenever without limits), when they invest in renovation prices have been deregulated that exponential work, can encourage them to invest in the rent-price increases have occurred. maintenance of their dwellings. 105 Various studies also demonstrate that regulated dwellings, although aimed at all city residents, benefit mainly individuals with greater financial difficulties and racialised groups, as is the case with other universal public services. The wealthiest individuals have more options and opportunities available to them in the private housing market. A study entitled “Forty Years of Rent Control: Reexamining New Jersey’s Moderate Local Policies after the Great Recession” 28 shows that areas with regulated rent tend to have lower rent prices, a smaller percentage of home owners and a higher percentage of immigrants. Another positive effect of regulation is that it improves the security of housing tenancies and encourages tenants to stay longer in the same place and therefore strengthen their ties with neighbourhoods. According to Clark and Heskin (1982), 29 it also benefits well-being and quality of life, as well as social cohesion in cities. In sum, the studies in favour of rent regulation underscore how it helps to make leases more affordable and benefits mainly the groups with the most socio-economic needs. This encourages tenants to stay longer in the same home, thereby helping to strengthen their ties to their neighbourhoods and promoting social cohesion. In their opinion, second-generation regulation per se does not reduce lease supply and they point out that there are other economic factors that may vary the availability of rental apartments. They also recommend keeping the exceptions to price regulation, but with limits, in the case of alteration work, so that it does not become a loophole for POSITIONS ON RENTAL PRICE REGULATION An intermediate opinion ANAÏS LÓPEZ increasing rent prices or counter-productive: “Landlords Fotocasa and Habitaclia moving apartments over to could choose to put their properties “Any proposal to the sales market. up for sale, reducing an already regulate rent has to be Anaïs López, the Director scarce supply of lease properties". very well established of Communication and She also warns that, facing and grounded so it Contents at Fotocasa a price-regulation measure, does not affect or and Habitaclia, offers an “landlords could opt to invest less harm landlords” intermediate position on in their dwellings or even offload the proposed rent regulation certain taxes and rates (property considered under the tax, waste collection rates) onto agreement between the their leases for tenants to pay”, to PSOE and Podemos political make up for the drop in income parties and also by the Catalan that price regulation would cause. government, in the decree that She also calls for “greater legal ultimately failed. security for tenants and landlords It seems “positive” to her that alike” and believes that the current both the government agreement measures are aimed more at between PSOE and Podemos on protecting the former: “We need a the State level and the Catalan more stable and professionalised government considered regulating rental market, one that therefore rent prices, as “they have seen has to be attractive and secure”. it is a problem and that it has to She concludes as follows: “Both be tackled and measures have professional and individual to be put in place”. Even so, she landlords must have guarantees warns of the following: “Any that their investment or savings proposal to regulate rent has do not incur risks, otherwise the to be very well established and lease supply will diminish”. grounded so it does not affect or harm landlords”. Otherwise, if the regulation fails to take account of landlords’ interests, it could be 107 Conclusions The debate on rent regulation has been back with a vengeance since 2017. Having been absent from the public agenda, it has become a central housing issue for various reasons. POSITIONS ON RENTAL PRICCE ORNECGLUULSAITOIONNS The rise in the number of tenants and rising lease prices have brought the debate on regulation to the public agenda, particularly since 2017 On the one hand, it should be borne in mind rent prices in Spain since 2006, according to that more and more people are living in rented data from Fotocasa (19.18 euros/m2). The upward dwellings, especially in big cities such as trend in prices has extended to the metropolitan Barcelona, where 35% of the population already municipalities around big cities and, in Catalonia, lives in rented properties, according to data from beyond the province of Barcelona. According to the Barcelona Metropolitan Housing Observatory Fotocasa, the growth in rent prices in 2019 was (OHB). While the prevailing culture in Spain is higher in Lleida (+11.8%), Girona (+11.6%) and ownership, owing to the historical legacy of the Tarragona (+7.3%) than in Barcelona (+2.1%). Franco dictatorship, the last few years have seen It was within this context of rising prices and mortgage-loan restrictions and an emerging evictions for defaulting on rent payments that change of attitude towards renting, both of which the Tenants’ Union was established in 2017, have led to a growth in renting. On the other to champion tenants’ rights. Along with the hand, this rise in the number of people living in other social movements championing the right rental housing coincides with a rise in rent prices to housing, such as the PAH and numerous that is disproportionately high when compared neighbourhood organisations, associations and to the growth in household incomes. The average unions, they managed to put the issue on the rent price in Barcelona grew by 127.7% from 2000 media’s agenda and subsequently on the political to 2018, whereas gross disposable household and institutional agenda, through social pressure. income only rose by 63.4%. At the same time, there has also been a growth Although the rate of growth of rental prices in in social awareness on rent regulation in big big cities such as Barcelona and Madrid — where cities. More specifically, three out of every four they have grown the most in the last few years people living in Barcelona have already declared — is beginning to slow down, prices are still on themselves to be in favour of this measure. the rise. In addition, 2019 closed with the highest 109 The debate on price regulation has been taken up by institutions since 2018 On the State level, the debate on rent regulation Catalan Parliament in September 2020 led to the began during the previous government, after the return of similar arguments. Despite its passing, vote of no confidence which brought the PSOE we shall have to assess the legislation's level of political party to power in June 2018. In fact, implementation from here on and take account this option was provided for within the budget of the risks that come with doubts over its agreement between PSOE and Podemos, but the constitutionality. government subsequently took a step back and The debate came to Barcelona City Council in the State decree on rentals does not provide for the framework of a non-permanent commission rent regulation in new leases. It does limit any rise on rent regulation. The commission held in rent prices within the same lease to the CPI and four meetings with the participation of some also extends the minimum term of leases from 3 thirty speakers representing owners, tenants’ years to 5 years, among other amendments. associations, professional associations and Following the approval of this decree and the experts at both State and international levels. general elections (in the second round of elections Several aspects relating to rent regulation in November 2019), which led to the coalition were dealt with: the housing-policy situation, government between PSOE and Podemos, the international experiences, the regulation proposal for rent regulation in tight-market areas framework and possible effects of rent regulation. was brought back in 2020, although we shall have Taking part in the commission, which was created to wait and see how it is implemented. at the proposal of the ERC political party, were On the Catalan regional level, the government the various political parties with representation in presented a decree on rentals in May 2019 that the City Council. Its conclusions were approved provided for price regulation, but it failed at by Barcelona en Comú, the Partit Socialista de the Catalan chamber. Social movements and Catalunya, Esquerra Republicana de Catalunya left-wing forces such as Catalunya Sí que es Pot and Junts per Catalunya, the political parties and CUP were opposed to it as they considered that took part in all its meetings. And these had it insufficient, whereas the other political party one basic premise **: rent needs to be regulated groups either believed it represented excessive and the debate ought to be focused on how such interference in the free market or questioned regulation has to be implemented. whether the Catalan government had the jurisdiction to regulate leases. The Catalan government believes it has the jurisdiction to do so, under the Catalan Civil Code. The debate over the recent legislation for rent regulation driven by the Tenants’ Union and passed in the ** To see the conclusions in full, please see the annexes to this publication, found on page 119. CONCLUSIONS A controversial measure: pronouncements in favour and against rent regulation Within the current scenario, both in Catalonia believe they are based on a perfect-competition and in Spain, the question of whether or not market dogma, where supply and demand self- to regulate rental prices is still being hotly regulate, which is not how the property market debated. This is a measure opposed by numerous really operates. Social movements recall how detractors, mainly from the world of economics during the property-boom period in Spain there and the business sector. Their main criticism was no shortage of properties for sale (close to against the proposal is that it would reduce 6 million dwellings were built between 1997 and the supply of rental properties while increasing 2007, more than in Germany, France and the demand, thereby triggering the undesired effect UK together), and yet this did not lead to a fall of price rises. In their opinion, a black rental in prices. According to the report from the UN’s market would appear, where tenants would end former Special Rapporteur on adequate housing, up paying the difference between regulated and Miloon Kothari, this last decade saw house prices real prices. in Spain rise by 10% a year and double in cities Rent-regulation detractors also warn of the such as Barcelona and Madrid. difficulty of assigning leases with regulated Those in favour of regulation believe that prices to everyone applying for one, in a it helps to make leases more affordable for context of a supply shortage. They warn of city residents, that it benefits mainly groups the arbitrariness by which such a decision with more socio-economic needs and that it could be taken, which, if it remained in the encourages stronger ties between residents hands of landlords, would give them even more and their neighbourhoods and promotes social negotiating power over lease applicants, so cohesion. They assert that more modern rent there would be no guarantee that regulated regulations do not reduce lease supply per se dwellings would effectively go to those most and that there are other economic factors which in need of them. On the other hand, they point affect the availability of rental apartments. out that, in a context of low supply, long waiting In addition, they turn the argument made by the lists could arise for renting a dwelling. Another measure’s detractors on its head, noting that criticism raised time and again is that, by it is deregulation, rather than regulation, which losing profits, landlords would no longer have causes prices to rise. For example, they point out any incentive to invest in the maintenance that there is historical evidence demonstrating and renovation of their flats. This would lead how rent prices grew exponentially in US states to a steady deterioration in the quality of the such as Massachusetts, after prices were dwellings. deregulated in the mid-1990s. For those who champion rent regulation, the above-mentioned arguments are fallacious. They 111 Today, we are looking to stabilisation systems that are more flexible than the old price freezes, with rigid price caps Rent-regulation defenders also point out a trap that most of the criticism levelled at the measure falls into. Such criticism is mostly focused on first-generation regulation (price freezing), which was applied in a number of European countries during the first half of the 20th century and in Spain, during the Franco dictatorship. This proposal involved the establishment of rigid price caps, a measure taken after a good part of the housing stock had been destroyed during both the First and Second World Wars, when the housing shortage problem worsened. By contrast, the rent regulations implemented since the 1970s (Rent Stabilization) in various European countries and in the United States offer greater flexibility. Rent reference prices are periodically updated and adjusted to the rate of inflation and, in addition, regulation establishes various exceptions so as not to disincentivise the entry of new dwellings into the leasing market. For example, they usually exclude newly constructed dwellings earmarked for rental housing (known as built-to-rent). In cities where stabilisation systems have been applied, changes are gradually being made, based on acquired experience, to make them more effective This publication has examined examples from cities around Europe and the world where rent- price stabilisation has been implemented: Berlin, New York, Paris and Vienna. CONCLUSIONS Rent regulation in Germany New tenants in Paris pay the is based on a price reference same as their predecessors: index and a rent brake that prices are only updated defines the extent to which based on an index equivalent index prices can be exceeded to the CPI in new leases In the case of Paris, rent regulation rests on In the case of Berlin, price regulation is based another cornerstone. Since 2012, when a new on two key indexes: the Mietspiegel and the lease for a flat is signed, the person who starts Mietpreisbremse. The Mietspiegel, a system living in the property pays the same rent as the in operation since the 1970s, establishes previous tenant. The price is only revised in rent-price reference rates and is periodically accordance with the rent reference index (IRL), updated. It is drawn up taking account of the which is based on the French CPI. This is the value of comparable dwellings on the market, same criterion governing changes in rent prices their location, size, age, quality of services and during the lifetime of the same lease. Only some facilities and so on. Landlords cannot raise rent exceptions are provided for, when lease prices prices more than 20% above this reference rate are manifestly below market prices. in current leases. This index was joined in 2015 by As a complement to this system, the ALUR Act of the so-called rent brake (Mietpreisbremse), which 2014 established a rent-price cap (the previous establishes that rent reference prices cannot be system only established that it must be revised exceeded by more than 10% in new leases. in accordance with the IRL but not the maximum According to Berlin City Council, the system has level it could reach). This limitation is based been used to slow down the rate of rent-price on a price reference index, which can only be rises, but not to contain them completely. One exceeded by 20% (the index price plus this 20% of the factors undermining the effectiveness is what is known as the loyer majoré). This new of the system are the numerous exceptions system was suspended by a Paris administrative where landlords can demand higher prices than court in 2017, which then led to the approval of those established by the previous indexes (for regulations (the ELAN Act of 2018) with similar — example, for alteration work on dwellings). That though less ambitious — features in an attempt is why the German government stepped up rent to dodge this ban. The difference between the regulation in 2019, eliminating some of these ELAN Act of 2018 and the ALUR Act of 2014 is exceptions, and the Berlin regional government that the most recent one limits the validity of froze the price reference index at the start of this price limitation to 5 years. It envisages it as 2020, having decided that the rates established a temporary measure. in 2013 would remain valid for the next 5 years. This is a temporary measure to enable policies to be launched in parallel for expanding the city’s affordable rental housing stock. Nevertheless, the Berlin Federal Court declared the measures unconstitutional and referred it to the German Constitutional Court, which has yet to make a ruling on the matter. 113 Vienna, the European capital of social housing: 45% of the city’s dwellings are in the hands of the Administration or limited-profit housing associations In the case of Vienna, it is the huge size of its of public expenditure. The City Council provides affordable and social public housing stock that (low-interest) loans to public and private has the most influence, rather than private-lease companies and to the LPHAs building these price regulation. Its influence is so important dwellings, to fund up to 35% of the building (representing 45% of all housing in the city and costs. In return, housing developers have to home to some 60% of Vienna's residents) that guarantee affordable rent prices. it also puts downward pressure on the prices of Besides having an extensive public and social the rental properties found in the free market. rental housing stock at its disposal, private Vienna is the European capital of social housing, leases in the city are also subject to a price- a position it has achieved not just through public regulation system. The current system dates initiatives but also thanks to the participation of back to 1994 and limits the price of dwellings limited-profit housing associations (LPHAs). In that were built before 1945, given that most of fact, 220,000 of the city’s 420,000 social and the city’s housing stock was built before that affordable dwellings are owned by the City Council date. Today, however, this means that more itself and a further 200,000 by LPHAs, which are and more dwellings are falling outside that cooperatives or limited-profit companies. system of regulation, which is why a number Note that, paradoxically, Vienna is capable of social movements and left-wing forces have of funding a system with an extensive social been calling for the system to be revised, to housing stock without allocating it a high level strengthen tenants’ rights. CONCLUSIONS Incentives, based on loans, are being offered in New York for landlords who move their dwellings over to the stabilisation system. The city’s housing agency issues bonds in the market to find funding for this purpose In the case of New York, the price-regulation are disproportionately high, given the income system presents certain special features when of the applicants). The system is operative so compared to the above-mentioned cases of long as under 5% of all the city’s rental housing European cities. As in these cases, it is based on a is available (vacant). It is based on the so-called stabilisation system, with a rent-price cap, which vacancy rate, which was historically set in New almost half of the city’s rented dwellings are York at around 3%. This rate, among many other governed by. The other half are in the hands of data on the state of the city’s housing stock, is the free market. Unlike Vienna, the public housing determined by a far-reaching official survey on stock in this North American city is residual; so, the issue with a long history behind it: the New in practice, regulated private rentals also end up York City Housing and Vacancy Survey (NYCHVS). meeting the housing needs of people with the A third special feature of the New York system is most socio-economic difficulties. the criterion for revising the prices of regulated The stabilisation system is made up of dwellings. Reference prices are not periodically practically all dwellings built before 1974 with updated, taking account of the comparable 6 or more storeys as well as more recently built apartments on the market, but rather their properties under financial incentives and aid revision depends on a body, the Rent Guidelines from the public administration. It is in this last Board (RGB), which is made up of landlord, entry route to the system where we see one of tenant and civil-society representatives. Its the main differences between New York and system for determining price revisions is based the cities mentioned above. New York city has a above all on weighing up the interests and housing agency which issues its own bonds for points of view of the various parties and is housing-project funding. Every private company therefore essentially political. that wishes to apply for this funding to building As in the case of Berlin, the system’s numerous housing has to enter the stabilisation system. exceptions have undermined its effectiveness. It should be noted that, to carry out operations Which is why the New York government of this magnitude, a large infrastructure is stepped up the regulation in 2019 to give required, something that New York, which is tenants more protection, restricting some of regarded as a city state, can provide itself with. the system’s loopholes, for example, by limiting Another difference with respect to Berlin or the renovation work that can justify prices that Paris is that the criterion for applying the price exceed the reference rates. stabilisation system has nothing to do with the existence of a tight market (where offer prices 115 Rental price regulation features in the current government agreement between PSOE and Podemos in Spain The proposals presented up to now, not just in believe that the index ought to be fed data from Catalonia but in the whole of the Spanish State, diverse sources, not just from the rental market, share some of the features of the Berlin model and take account of socio-economic criteria too, in particular, as they are fundamentally based on such as disposable household income. In addition, the establishment of rental price limits, based they question whether only lease deposits from on a price reference index. The PSOE-Podemos the last 3 years should be taken as a reference, agreement of 2020 authorises both local since this was a period of rising prices. They authorities and regional communities to regulate therefore believe the Catalan government is abusive rent-price rises in previously declared legitimising the prices of the housing bubble. They tight areas, based on the State’s Rental Housing demand that the index is built transparently and Price Index System. It will also take account of through a process of dialogue, where the views of the advances made by regional communities that social movements are taken into account. already have their own index, such as Catalonia, Even so, it was during the process enabling the or which can produce one in the future following a enactment of the Bill on rental price regulation methodology similar to the State’s. in the Catalan Parliament in September 2020, A rent-price reference index has already been in thanks to the impetus from the Tenants’ place for several years in Catalonia, produced on Union, that the social movements had to show the basis of the Incasòl register of deposits. It was flexibility in some of their positions on this and initially envisaged as a measure for transparency. It other issues, to bring about an agreement which is understood that it is used so that both landlords they considered, overall, to be satisfactory and a and tenants have the same information on great victory for tenants. average rent prices, to help create a level playing Other experts in favour of the regulation are field between the parties during negotiations. keen to include socio-economic criteria, not for It is on the basis of this index that the Catalan producing the reference index but rather for government subsequently coordinated the determining whether an area is a tight market. proposed decree on rent regulation which failed Only where an area is classed as such can price to gain a sufficient majority in Parliament in June regulation then be applied there. These same 2019, and did not convince social movements. experts are naturally of the opinion that including First of all, these social movements questioned the socio-economic criteria in the index could cause a decree’s numerous exceptions, which provided for loss of profitability among landlords and that this a wide range of cases where flats were not subject could lead to a drop in rental supply. They warn to price restrictions (for example, dwellings that that the price regulation system has to be built by are newly built or where major renovation work has balancing the interests of landlords and tenants been carried out). alike, and that the way in which it is coordinated Another reason for criticism has to do with the needs greater fine-tuning if it is to achieve the methodology used to produce the rent-price desired effects. The fact that the index in Catalonia reference index. As in Berlin, the index in Catalonia is built on the basis of real lease deposits — in is based on the prices of comparable dwellings contrast to cities such as Berlin, where it is based in the market, according to their features, sizes, on representative property samples — means that location, facilities and so on. Social movements it has a very good quality database and that these reference prices can be fine tuned and adjusted. CONCLUSIONS More use needs to be made Giving more stability to tenants, of tax policies and subsidies with the aim of putting us on to put downward pressure the same level as ten other on rent prices European countries with open- ended leases In addition to regulating prices, it should be borne in mind that there are many other Another demand from social movements measures that can be taken to influence rental concerns lease terms. While the State decree on costs. The rent reference index can also be rentals of March 2019 extended minimum lease used as the basis for tax-policy measures or terms from 3 years to 5 years, social movements subsidies. In other words, tax incentives or remain committed to an open-ended lease subsidies can be provided to landlords who model such as the ones found in ten European rent out their flats below reference index countries (the Netherlands, Portugal, Italy, rates, for example, to renovate their dwellings, Greece, Sweden, Denmark, Finland, Switzerland, and they would otherwise not be eligible for Germany and Austria). these subsidies or incentives. This measure is already being implemented in several locations, although it should be borne in mind that it is exclusively applied with municipal taxes, such as the property tax IBI, which have little bearing on general taxation compared to state taxes such as VAT and income tax. REIT regulation, unfinished business Other demands from social movements relate to the need to slow down the speculative activity of REITs (real-estate investment trusts) in the housing market. One of the main demands relates to its tax system, as they are currently exempt from corporation tax. 117 Rent regulation has to be framed within a more general strategy, with a commitment to expanding the public and social housing stock Future outlook Finally, both social movements and various Following a decade of paralysis over the experts highlight the need to link rent regulation expansion of our affordable housing stock, policies to a comprehensive strategy on housing. during which the urban solidarity targets of the The key element in that strategy is expanding Housing Act of 2007 (set at 15% social housing the affordable housing stock, especially rental in Catalonia by 2027) were systematically housing. This would become a more medium- and missed, we have recently reached a turning long-term line of action, whereas price regulation point. Decree 5/2019 on Emergency Measures would be used to curb short-term price rises. is regarded by several experts as the most important housing regulation since the Act of It should be noted here that, compared to other 2007. European countries, Catalonia and indeed the whole of Spain are a century behind in Besides the emergency measures for their social housing policies. As a result of this guaranteeing housing alternatives for people at historical legacy and incapacity to reverse it risk of residential exclusion, after which the decree to this day, a mere 2% of Spain’s total housing is named, the decree also contains numerous stock corresponds to public and social rented structural measures. Catalonia is becoming the dwellings, compared to 32% in the Netherlands, second regional community in the Spanish State, 24% in Austria and 19% in Denmark. after the Basque Country, to effectively protect officially protected housing (HPO) in perpetuity. It is high time, then, we established the bases In addition, land reserves for HPO have been for reversing this trend. The best example to increasing very substantially on buildable land follow here is the city of Vienna. Expansion of and on unconsolidated urban land (up to 40%) the affordable housing stock can essentially be and, among other measures, at least half of these carried out in two ways: by building new dwellings dwellings have to be allocated to rental housing. or by renovating and reusing existing dwellings. In the first case, what is fundamentally needed is The decree only came into force on 31 December collaboration from the public Administration not 2019 and was subsequently ratified by the only with the private sector (where the private Catalan Parliament. It is only at the start of sector takes joint responsibility for guaranteeing its implementation and an essential tool for the right to housing) but also with housing ensuring its compliance is the Territorial Sectoral cooperatives. In the second case, tools can be Housing Plan. This document is meant to specify used such as the Administration's pre-emption the timetable and the implementation goals of rights, to acquire dwellings for social renting, or Catalonia’s housing policies. its expropriation of large property owners’ vacant flats for the same purpose. CONCLUSIONS The expansion of the public and social housing long-term challenge —, we shall have to continue stock requires time and resources and, in the working on measures which, in the short term, meantime, measures need to be taken that guarantee affordability in the private rental guarantee the short-term affordability of rental housing market. Rental price regulation, which is housing. Price regulation is one of these. being implemented in several cities in Europe and But it should be noted that expanding the public the rest of the world, is one of them. housing stock requires time and resources and In the specific case of Barcelona, the high that an assessment will be needed regarding the proportion of tenants living in the city (35%) extent that plans with this aim may be affected and the high level of social consensus on the by the COVID-19 health emergency and all its measure (75% of city residents are in favour of it) economic and social implications. are advising us to stop sitting on the fence. The social and economic scenario arising from As has been the case in many other cities, the pandemic also has implications in the it is likely that implementing this system in property market, which the public authorities Barcelona and throughout Catalonia will not will certainly have to take into account when be without challenges. But the experiences of planning housing policies. However, under no other cities show that the only way to adapt circumstances must this critical social and the measure to each local context is to keep on economic situation be turned into a pretext adapting the system through praxis. It is now for delegitimising policies or proposals that are time for action. not fully in keeping with the interests of the private sector. Considered solutions need to be sought, that put citizens' right to housing at the forefront, and for which private players share co-responsibility, in keeping with the social function of property. A proposal which Barcelona City Council put to tourist-apartment owners, who have suffered sharp losses of profit since the outbreak of the pandemic, is to transfer their properties to the residential rental market. Despite the difficulties we have been experiencing, this change of use of dwellings could expand the city’s residential rental housing stock. It should be noted at the same time that the COVID-19 crisis has also had a strong impact on the finances of families and their capacity to meet their rent or mortgage payments. Of course, so long as the large gap lasts — or worsens — between the purchasing power of families and rent prices, and at least so long as the public and affordable housing stock remains insufficient to meet the needs of the city’s residents — a 119 Annexe Report on the findings of the non-permanent commission for the regulation of rent in the city of Barcelona INDEX 1. Background 120 2. Purpose 122 3. Diagnosis, synthesis of debate and collection of contributions 122 The situation and policies for access to housing in Barcelona city, in the metropolitan area in other global cities. 122 International experience in rental price regulation 127 Competence framework and potential regulatory scenarios 133 Social, economic and urban impacts of rental price regulations in Barcelona and the metropolitan area 141 4. General conclusions 148 ANNEXE Nombre de la dependencia email@bcn.cat Informe de aportaciones de la comisión no permanente de estudio sobre la regulación de los precios de los alquileres » 01. Antecedentes El Plenario del Consejo Municipal, en su sesión del 23 de julio de 2019, acordó, a petición de los grupos municipales de ERC y JxCat, lo siguiente: » Instar al Gobierno de la Generalitat de Catalunya a iniciar el trámite para un proyecto de ley que regule los precios de los contratos de arrendamiento de vivienda. » Crear una comisión no permanente de estudio en el Ayuntamiento de Barcelona de acuerdo con lo previsto en los artículos 35 y 39 bis del Reglamento orgánico municipal (ROM), sobre la aplicación y la repercusión que tendría la regulación de los contratos de arrendamiento de vivienda en la ciudad de Barcelona y en el área metropolitana. Objeto de la comisión Estudiar la aplicación y la repercusión que tendrá la regulación de los precios de los contratos de arrendamiento de vivienda en la ciudad de Barcelona y en el área metropolitana de Barcelona. El objetivo es impulsar y conseguir la implantación efectiva de esta regulación en la ciudad. La comisión ha celebrado cuatro sesiones de trabajo sobre los temas y con los ponentes que se enumeran a continuación: » Sesión 1. La situación y las políticas de acceso a la vivienda en la ciudad de Barcelona, en el área metropolitana y en otras grandes ciudades globales. Ponentes: » Elena Massot, vicepresidenta de la Asociación de Promotores de Cataluña. » Joan Ràfols i Esteve, presidente de la Cámara de la Propiedad Urbana de Barcelona. » Lluís Hosta (sustituye a Lídia Guillen, presidenta de la Asociación de Gestores de Políticas Sociales de Vivienda de Cataluña). » Guillem Domingo Utset, técnico de Vivienda y Ciudad del Observatorio DESC. » Sorcha Edwards, secretaria general de Housing Europe. » Pilar García Almirall, catedrática de Arquitectura de la Universidad Politécnica de Cataluña. » Carme Trilla, presidenta del Observatorio Metropolitano de la Vivienda, que, por motivos de salud, tiene que excusar su ausencia. www.barcelona.cat 121 » Sesión 2. Las experiencias internacionales en la regulación de los precios de los alquileres. Ponentes: » Cea Weaver, coordinadora de la campaña “Housing Justice for All”, de Nueva York. » Eoin Ó Broin, portavoz político del Sinn Féin en materia de vivienda. » Jaime Palomera, portavoz del Sindicato de Inquilinas e Inquilinos. » Elga Molina, responsable de la Oficina de la Vivienda del Consejo Comarcal del Tarragonès y asesora jurídica en derecho inmobiliario. » Sergi Nasarre, director de la Cátedra UNESCO de Vivienda en la Universidad Rovira i Virgili. » Jaume Fornt, director adjunto de la Agencia de la Vivienda de Cataluña. » Ana Puig‐Pey, directora del Máster en Dirección de Empresas Inmobiliarias Innovadoras, y evaluadora de los programas LIFE, SÓCRATES y JESSICA, de la Unión Europea. » Sesión 3. El marco competencial y los escenarios potenciales de la regulación. Ponentes: » Xavier Bernadí, doctor en Derecho y director general de Derecho y de Entidades Jurídicas en el Departamento de Justicia. » Esther Arroyo, catedrática de Derecho Civil por la Universidad de Barcelona y de la Cátedra Jean Monnet de Derecho Privado Europeo. » Domènec Sibina, profesor titular de Derecho Administrativo de la Universidad de Barcelona. » Josep Ferrer, catedrático de Derecho Civil por la Universidad Pompeu Fabra. » Héctor Simón, profesor de Derecho Civil y miembro de la Cátedra UNESCO de Vivienda de la Universidad Rovira i Virgili. » Joan Ràfols i Esteve, presidente de la Cámara de la Propiedad Urbana de Barcelona. » Pol Borrellas, investigador titular del Instituto Ostrom Catalunya, economista y graduado en International Business Economics por la Universidad Pompeu Fabra. » Sesión 4. Los impactos sociales, económicos y urbanísticos de las regulaciones de los precios de los alquileres en Barcelona y en el área metropolitana de Barcelona. Ponentes: » Jordi Bosch i Meda, doctor en Arquitectura, licenciado en Ciencias Políticas y codirector del Posgrado de Políticas de Vivienda de la Escuela Sert. » Leilani Farha, relatora de las Naciones Unidas sobre vivienda adecuada entre el 2014 y el 2020, y directora de “The Shift”. » Stephen Barton, doctor en Planificación Urbana y Regional por la Universidad de California y exdirector de Vivienda de la ciudad de Berkeley. » Luis Zarapuz, economista del Gabinete Económico de Comisiones Obreras. » Josep Maria Vilanova, representante del Colegio de Arquitectos de Cataluña y www.barcelona.cat ANNEXE profesor del Departamento de Urbanismo y Ordenación del Territorio de la Universidad Politécnica de Cataluña. » Montserrat Junyent, jefa de la Asesoría Jurídica del Colegio de Agentes de la Propiedad Inmobiliaria de Cataluña y presidenta de la Federación de Asociaciones de Empresas Inmobiliarias. La comisión no permanente de estudio se extinguirá en el momento en que se elabore un informe que recoja las aportaciones y los puntos de vista que se manifiesten en las sesiones (este informe), y una vez se cumpla el calendario de trabajo, de conformidad con el acuerdo de creación aprobado por el Plenario del Consejo Municipal en la sesión de 23 de julio de 2019. Aprobación de la Ley 11/2020, de medidas urgentes en materia de contención de rentas en los contratos de arrendamiento de vivienda El día 18 de setiembre de 2020, se aprobó la Ley 11/2020, de 18 de setiembre, de medidas urgentes en materia de contención de rentas en los contratos de arrendamiento de vivienda y de modificación de la Ley 18/2007, de la Ley 24/2015 y de la Ley 4/2016, relativas a la protección del derecho a la vivienda. La redacción y la aprobación de esta ley tuvieron lugar en los meses en que se llevaba a cabo la propia comisión y, por lo tanto, la ley ha añadido un elemento importante de debate a las sesiones celebradas. » 02. Objeto El objeto de este informe es recoger las aportaciones, las conclusiones, el debate y los puntos de vista manifestados en las sesiones de la comisión no permanente de estudio sobre la regulación de los precios de alquiler, en especial todo lo que pueda permitir mejorar el acceso a la vivienda de alquiler. » 03. Diagnosis, síntesis de debate y recopilación de aportaciones Se incorpora una diagnosis y la síntesis de debate para conocer la situación de la problemática y la postura defendida por cada ponente. La recopilación de aportaciones se estructura de acuerdo con los temas tratados en cada una de las sesiones de la comisión, ya que cada una ha abordado puntos de vista complementarios para evaluar la pertenencia de la regulación de los precios de alquiler y los mecanismos para llevarla a cabo. La situación y las políticas de acceso a la vivienda en la ciudad de Barcelona, en el área metropolitana y en otras grandes ciudades globales. Diagnóstico Barcelona y el conjunto del área metropolitana se encuentran en una situación crítica con respecto a la dificultad de acceso y mantenimiento de la vivienda, en gran medida a causa de la gran tensión a la que está sometido el mercado de la vivienda y, en especial, el mercado de alquiler. En este contexto cabe destacar lo siguiente: www.barcelona.cat 123 » En el conjunto de la ciudad, el parque de viviendas vacías es muy bajo y se sitúa en 10.052 viviendas, el 1,22 % del parque, un porcentaje muy reducido que muestra la gran presión que hay sobre la vivienda. » La estructura de la propiedad en la ciudad está atomizada y hay un importante predominio de la propiedad particular. No obstante, se ha dado un proceso de concentración y actualmente las personas jurídicas, que solo representan el 2,6 % de los contribuyentes, son titulares del 10,7 % de las viviendas. Esta concentración está, pues, en muy pocas manos, de modo que el 0,2 % de los contribuyentes disponen del 9,8 % de las viviendas (75.767 viviendas, cifra que representa una media de 69,7 viviendas por tenedor). » Se ha producido un fuerte crecimiento del alquiler, aunque el parque sigue siendo mayoritariamente de propiedad. En la ciudad de Barcelona, entre el 2011 y el 2017 el alquiler ha pasado de representar el 30,1 % de las viviendas a situarse en el 35 %. En el caso de las personas jóvenes, el 86,1 % viven de alquiler. » Este aumento del parque de alquiler ha sido paralelo al crecimiento del precio de las viviendas que, en la ciudad de Barcelona, se encuentra en crecimiento desde el 2014 y, al cierre del 2019, se situaba en 978,81 euros de media. » Estos elevados precios hacen que haya una discrepancia importante entre los precios de la oferta y la capacidad de la demanda, de modo que entre los años 2000 y 2018 se ha producido un distanciamiento entre la renta familiar disponible bruta (RFDB) y los precios de compra y alquiler. » En la ciudad de Barcelona, la RFDB ha aumentado un 63,4 %, mientras que los precios de alquiler han aumentado un 127,7 % (dos veces más) y los de compraventa de segunda mano un 144,7 % (2,3 veces más). » En el conjunto de Cataluña, la RFDB ha aumentado un 38,2 %, mientras que los alquileres lo han hecho un 91,8 % (2,4 veces más) y los precios de compra de segunda mano, un 93,9 % (2,5 veces más). » Esta realidad hace que los hogares que viven de alquiler en la ciudad destinen una media del 43,5 % de sus ingresos al pago de la vivienda. De acuerdo con las recomendaciones europeas, los hogares tendrían que destinar un 30 % de sus ingresos a pagar la vivienda (incluido el pago de la vivienda y los suministros). » Barcelona tiene un parque escasísimo de vivienda de alquiler de titularidad pública o social: solo el 5,2 % del parque de alquiler pertenece a administraciones públicas y el 1,6 %, a entidades religiosas y del tercer sector. Síntesis del debate Sra. Elena Massot, vicepresidenta de la Asociación de Promotores de Cataluña (APCE) » Es necesario aumentar la oferta. El parque no crece lo suficiente para dar respuesta a las necesidades, y los precios aumentan. » Sin crédito hipotecario, los potenciales compradores se han pasado al mercado del alquiler. » Hay un mercado de alquiler extremamente atomizado. » Es necesario acabar el planeamiento y desarrollar solares. Es necesario priorizar la construcción de las 20.000 viviendas de protección oficial (VPO) que se pueden hacer en Barcelona. » Es necesaria más dotación presupuestaria para las políticas de vivienda. www.barcelona.cat ANNEXE » Es necesaria una colaboración público-privada y medidas flexibles, como el coliving. » Es necesario reducir el exceso de burocracia en el área metropolitana de Barcelona y en Barcelona. » Debe dotarse de seguridad jurídica al sector inmobiliario. » Los riesgos de una intervención en el mercado del alquiler son: » reducción de la oferta, » aumento del mercado negro o economía sumergida, » selección restrictiva de los inquilinos. » Falta una visión conjunta; ahora hay una visión local. » Es necesaria una política de transporte público metropolitana, para acercar la vivienda y el trabajo a todo el mundo. » Es necesario un aumento de los presupuestos, los incentivos, los complementos de renta y las bonificaciones fiscales. » Los agentes privados deben ser una parte de la solución, no la única solución. » Es necesario elaborar un plan estratégico para la vivienda con una previsión de quince años. » Es necesario favorecer la corresponsabilidad con el sector privado, empezando por un marco claro y estable. Sr. Joan Ràfols i Esteve, presidente de la Cámara de la Propiedad Urbana de Barcelona » En el 2018 volvió a crecer el fenómeno de la inmigración en el área metropolitana de Barcelona; sin oferta, aumenta la exclusión residencial. » La escasez de vivienda de alquiler es consecuencia directa del control de alquileres español que hubo entre 1920 y 1994. » España tiene el porcentaje más alto de familias que dedican más del 40 % de sus ingresos al alquiler por la ausencia de una política social ligada a la vivienda de alquiler. » Regular el precio de los alquileres es pasar toda la carga al mundo privado. » El control del alquiler no funciona y distribuye los beneficios y las cargas de manera injusta. » No puede haber control de alquileres ni parque público de alquiler sin un estado de bienestar que garantice el acceso a la vivienda a las familias que están excluidas del mercado. » Se debe dotar de inversión pública la vivienda social. » Se debe desarrollar todo el suelo urbanizable. » En Barcelona no hay suelo y hay que ir a buscarlo más allá del área metropolitana de Barcelona. » La VPO tiene el precio limitado, pero no tiene ningún beneficio fiscal. Sr. Lluís Hosta, representante de la Asociación de Gestores de Políticas Sociales de Vivienda de Cataluña » Los alquileres no pueden estar en el libre mercado absolutamente. » Hay que entender el control de rentas como una solución coyuntural necesaria, pero se debe pensar en soluciones a largo plazo. www.barcelona.cat 125 » El porcentaje de vivienda de parque público es ínfimo; si la oferta fuese suficiente, no se dispararían los precios. » El 80 % del parque de alquiler está en manos de pequeños propietarios y no dejarán de alquilar por la regulación. » La regulación debe tener seguridad jurídica. » Deben dotarse de presupuesto las partidas de vivienda. Sr. Guillem Domingo Utset, técnico de Vivienda y Ciudad del Observatorio DESC » El aumento de los hogares de alquiler significa que hay más familias expuestas al aumento de precios (el 42 % entre el 2013 y el 2018). » Se detecta un desajuste entre una oferta inasequible y las capacidades de la demanda, y se genera desigualdad y segregación (gentrificación). » Las familias barcelonesas tienen que hacer un sobreesfuerzo dedicando, de media, el 40 % de sus ingresos a pagar la vivienda. » Según el Observatorio de la Emancipación del Consejo de la Juventud de España, las personas jóvenes tienen que dedicar el 120 % de su salario a acceder a la vivienda de alquiler. » En el 2019, en Barcelona hubo 2.125 desahucios (1.700, de alquiler). » Históricamente, las políticas públicas (municipales, catalanas y estatales) se han enfocado mal y no han fomentado lo suficiente el alquiler. » Ha faltado exigir al rescate bancario un retorno social, por ejemplo, en forma de viviendas para aumentar el parque público. » El marco legal es un elemento definitorio del modelo de vivienda. » El sistema de vivienda en el Estado y en Cataluña ha tenido resultados negativos con respecto a los derechos fundamentales de las personas. » En el artículo 33 de la Constitución se indica que la función social forma parte esencial del derecho a la propiedad privada. » El informe presentado por la relatora de la ONU por el derecho a la vivienda nos indica que, si una persona tiene una actividad económica relacionada con un bien de primera necesidad, seguramente habrá regulaciones superiores que deberá soportar. » La medida del 30 % en suelo urbano consolidado es una medida estructural a largo plazo. » No hay ningún ayuntamiento que haya puesto la mesa de emergencia a cero, porque los desahucios no cesan. » Es necesario que todas las administraciones cooperen. Sra. Sorcha Edwards, secretaria general y responsable de Relaciones Institucionales de Housing Europe » Se están utilizando viviendas vacías en el centro de la ciudad como activos. » Se necesita una inversión en el sector inmobiliario que después retorne a las ciudades. » Internacionalmente se está viendo un crecimiento del alquiler privado, que actualmente no es un sector que añada valor a la sociedad, sino que le resta. » Hay una falta de competitividad de las ciudades a consecuencia de los problemas relacionados con la vivienda asequible. www.barcelona.cat ANNEXE » Se deben conocer los errores del pasado para no repetirlos. » En los lugares donde hay muchas organizaciones sin ánimo de lucro, hay una mayor resiliencia del sector de la construcción en época de crisis. » En Europa, el Green New Deal es primordial para aumentar los recursos financieros y mejorar la calidad del parque de vivienda sin aumentar los alquileres. » La Unión Europea no tiene competencias sobre vivienda ni tampoco en regulación de los alquileres ni en planificación urbanística, pero sí que puede facilitar el intercambio de buenas prácticas entre ciudades. » Hay una demanda y una necesidad sociales crecientes: el 80 % de los europeos no pueden acceder a una vivienda asequible en el lugar donde viven. » Limitar los precios del alquiler es una solución a corto plazo. » No se pueden reproducir en Barcelona soluciones de otras ciudades sin tener en cuenta las características de cada una. » No es lo mismo la demanda de mercado que la demanda social: los estudiantes, los trabajadores de renta baja, los docentes son colectivos que deben poder vivir en la ciudad. » Si no hay construcción, no hay movilización de viviendas para el 30 % de VPO en suelo urbano consolidado. » Se deben abordar soluciones para los grupos de renta media y baja, un sector de la población cada vez más numeroso que se ha quedado encallado entre la vivienda protegida y el mercado privado. Sra. Pilar García Almirall, catedrática de la Universidad Politécnica de Cataluña » En Cataluña, las políticas de vivienda siempre han estado muy ligadas a la construcción, al desarrollo económico y al fomento del empleo. » La financiación de esta construcción de vivienda se ha orientado a crear propietarios en potencia. » Tenemos un parque de viviendas viejo: el 80 % de las viviendas son anteriores a los años ochenta. » Hay problemas para incidir en el mercado de la vivienda, sobre todo por la falta de financiación y de inversión en vivienda social. » Se necesitan asociaciones que creen fondos de garantía de vivienda social para financiar la mejora, la rehabilitación y la construcción de viviendas. » Las organizaciones privadas que gestionan vivienda pública en el resto de Europa están muy profesionalizadas y evalúan constantemente su impacto económico y social, con una exigencia a la que el sector público difícilmente puede llegar. » Hay que priorizar el parque de alquiler, la compra atomiza el parque y hace más difícil su gestión. » Sería conveniente aglutinar el parque en paquetes de gestión compartida para favorecer la optimización de los costes. » Se debe fomentar la introducción de parque de alquiler en una parte de los programas específicos de rehabilitación y mejora. » Sería necesario adoptar un sistema de control que se acote, que tenga en cuenta el coste de mantenimiento y el coste de actualización, e ir mejorándolo a medida que haya más información. » En un mismo barrio podemos encontrar varios submercados diferentes: el turístico, el de inquilinos normal y el de infraviviendas. www.barcelona.cat 127 » Todos los actores deberían alinearse para aportar soluciones. » Para tener un impacto sobre el mercado de alquiler, se debe ampliar la oferta y controlar los precios. » El mercado de la vivienda es disruptivo; la oferta no casa con la demanda. » Se debe incentivar que la gente no tenga ninguna dificultad a causa de este control de precios. » Hay que cambiar el chip e ir hacia un tipo de beneficio más seguro, más estable y prudente, y lo único que se debe evitar es que sea económicamente inviable. » Se deben buscar todas las medidas posibles para que la gestión y la administración sean más eficientes. Aportaciones a la comisión » Corresponsabilizar la propiedad privada. No dejar al mercado libre el control del acceso a un bien de primera necesidad; deben asegurarse todos los mecanismos para garantizar el derecho a la vivienda. La ONU pide la regulación de los precios de alquiler en zonas especialmente tensas. » Se debe aumentar la oferta de vivienda de alquiler. La subida de los precios de alquiler se debe a la combinación del cese de la actividad constructora, que ha reducido la oferta, y al aumento de la demanda por falta de crédito para acceder a la compra. Se necesita un aumento de la oferta a escala metropolitana vinculado a una mejora del transporte y a la sustitución de una visión localista por una visión global. » Se deben reforzar las políticas públicas para generar vivienda asequible: » Planificar las políticas de vivienda. » Aumentar los presupuestos. » Potenciar el parque de alquiler. » Estructurar una buena financiación (actualmente hay fondos europeos para impulsar su promoción). » Se debe potenciar la colaboración público-privada: » Impulsar nuevas figuras en la gestión del parque asequible y social con una visión de profesionalización y servicio público: housing associations, cooperativas de alquiler, agencias de servicio a la vivienda y entidades del tercer sector, entre otras. » Impulsar mecanismos más flexibles, como el derecho de superficie y la covivienda. » Dar apoyo a la mejora del parque privado. » Dar ayudas al pago del alquiler para facilitar el acceso a la vivienda asequible a los colectivos sin capacidad de acceder al mercado. » Se deben alinear todos los agentes para hacer posible un parque de vivienda asequible potente. Es necesaria una política conjunta entre las diversas administraciones y todos los agentes del mercado. » Se debe ofrecer seguridad jurídica: » Para dar seguridad a la propiedad, hay que evitar los cambios excesivos de la normativa. » Para dar seguridad a las personas arrendatarias, hay que impulsar cambios normativos que mejoren la protección, ya que muchos de los cambios normativos se www.barcelona.cat ANNEXE han hecho en detrimento de estas personas arrendatarias. » Se debe mejorar la fiscalidad del alquiler, que incentive la promoción de vivienda de alquiler y la puesta en alquiler de viviendas ya existentes. » Se debe acompañar la regulación del alquiler de unos índices que establezcan unos precios y que sean rigurosos y fiables. » Deben reducirse los tiempos de tramitación de las licencias para impulsar la promoción y la mejora del parque que se pueda destinar al alquiler. » Deben impulsarse comisiones para evaluar otros temas que también son clave en la política de vivienda, como los beneficios fiscales de determinadas sociedades o la licencia a perpetuidad de las viviendas de uso turístico. » Deben flexibilizarse las normativas administrativas para facilitar la transformación en viviendas de espacios que reúnan unas condiciones de habitabilidad adecuadas. Las experiencias internacionales en la regulación de los precios de los alquileres Diagnóstico Actualmente, hay países europeos que en sus legislaciones han reconocido sistemas para limitar el precio del alquiler: Austria, Alemania, Suiza, Francia, Bélgica, República Checa, Dinamarca, Italia, Holanda, Portugal y Suecia. La mayoría de los países europeos que pretenden estabilizar las rentas disponen tanto de un sistema libre como de un sistema regulado de renta (Austria, Bélgica, República Checa, Dinamarca, Alemania, Italia, Portugal). Además, estos sistemas pueden referirse tanto a las rentas iniciales como a su actualización. Para generar una regulación equilibrada de los precios de alquiler, se pueden tener en cuenta aprendizajes de su aplicación en otros países: » Los sistemas de regulación existentes trabajan a partir de tres elementos básicos: » La asequibilidad, a partir de la regulación tanto del precio inicial como de las actualizaciones. » Los incentivos, dirigidos a la propiedad para aumentar la oferta de vivienda de alquiler y fomentar la rehabilitación de las viviendas. » La previsibilidad y la transparencia por ambas partes, con el fin de impulsar la puesta en oferta por parte de la propiedad y el acceso a este régimen de tenencia, más asequible y flexible, por parte de las personas que buscan vivienda. » En Alemania se elaboran unas tablas con índices correctores que se aplican a los índices de referencia de los precios de alquiler según las prestaciones y las reformas de la vivienda. Estos valores se deben negociar entre las asociaciones de propietarios, las asociaciones de arrendatarios y la Administración, para otorgar legitimidad democrática al proceso. » El índice de referencia de precios de alquiler a partir del que se deberían aplicar estos índices correctores tendría que ser el índice medio, no el superior, ya que, si se utiliza este último, el sistema no contendrá las rentas, que es la finalidad que pretende la medida. » Se deberían establecer limitaciones con respecto a los contratos de alquiler existentes en el momento de la entrada en vigor de la normativa y con respecto a los que superen el límite fijado por el índice, ya que, si no, es difícil contener los precios, como ha pasado en Alemania. » En países con un parque de alquiler amplio y que disponen de sistemas de regulación de rentas, se establecen mecanismos de compensación que buscan el equilibrio entre asequibilidad y www.barcelona.cat 129 rentabilidad. » La actualización de la renta se deja a la libre voluntad de las partes, que pueden escoger entre aplicar el IPC o dejar al arrendador aumentar libremente la renta, siempre que, como máximo, lo haga anualmente y no la aumente más del límite establecido por el sistema de renta referenciado. » En Alemania se establece un límite general de no aumentar la renta anual en tres años más del 20 %. » En Francia también hay supuestos en que se permite al arrendador aumentar la renta cuando está muy devaluada en relación con los precios comparables de la zona. » Países como Suiza ponen límites a estos incrementos de renta para evitar que sean abusivos, por ejemplo, cuando son muy altos en relación con el último año o cuando los beneficios de los arrendadores son excesivos. » Se permite al arrendador repercutir los gastos reales de la vivienda al arrendatario, siempre que en el contrato de alquiler se haya acordado que el arrendatario se hará cargo de estos gastos. Síntesis del debate Sra. Cea Weaver, coordinadora de la campaña “Housing Justice for All”, de Nueva York » En Nueva York, el 52 % de los contribuyentes no pueden pagar más del 30 % de sus ingresos, y el 30 % de los inquilinos pagan un 50 % de sus ingresos, lo cual implica un gran riesgo de exclusión. » En los últimos años ha aumentado el porcentaje de grandes propietarios, hecho que comporta que más personas puedan acabar alquilando pisos, pero a un precio muy alto. » Hay dificultades para acceder a la vivienda, especialmente entre la población más joven (20- 30 años). » Las personas mayores generalmente venden su casa a una empresa y no a un particular. » Hay una gran discriminación racial en el mercado: las personas negras alquilan más que las blancas, que suelen comprar. » El movimiento de inquilinos para poder controlar los alquileres en el estado de Nueva York (2019) trabajó del siguiente modo: » La ley que establece que los inquilinos tienen el derecho de renovar sus contratos de alquiler. » Hay una compensación económica si las viviendas que no se utilizan se ponen en el mercado de alquiler con unos precios más limitados. En el caso de que se deba hacer alguna reforma, hay ayudas para poder ofrecer mejores viviendas (para propietarios e inquilinos). » Si un propietario intenta echar a un inquilino, este tiene derecho a un abogado que lo defienda. » Se entiende la búsqueda de vivienda como derecho humano. » El objetivo es tener un impacto sobre la estabilidad de los alquileres y de la comunidad, ya que cada vez habrá más personas que puedan alquilar y no comprar. www.barcelona.cat ANNEXE » En los Estados Unidos hay un crecimiento a escala nacional de varias medidas que afectan positivamente al mercado inmobiliario del alquiler. » Algunos de los argumentos que se utilizan en relación con el control de los alquileres han sido extraídos del sistema. Sr. Eoin Ó Broin, portavoz político del Sinn Féin en materia de vivienda » En el caso de Irlanda: » Los dos problemas importantes en el sector del alquiler privado desde el 2014 son el incremento de los alquileres y el incremento de los desahucios. » Algunos inquilinos no podían asumir los incrementos y muchos propietarios empezaron a vender sus propiedades, lo que dejó a muchas familias sin hogar. » La COVID-19 ha generado un gran impacto, y desde el 7 de marzo se ha aplicado una nueva ley que prohíbe los incrementos de los alquileres. » Una gran cantidad de inquilinos ha perdido el trabajo como consecuencia de la COVID-19, y preocupa que esta carga afecte a la sociedad de una manera más intensa. » En el sector del alquiler hay problemas estructurales; se deben atender las necesidades tanto de los inquilinos como de los propietarios. » Hay una ley que pide la prohibición de los aumentos de los alquileres durante tres años; los inquilinos también podrán recibir una bonificación y tendrán acceso a crédito. » Existe una serie de leyes constitucionales que buscan reducir los incrementos. También se quieren cambiar las leyes del alquiler para hacer que este sea indefinido y solo se pueda echar al inquilino en casos de daños a la propiedad o de participación en actividades criminales. » Uno de los principales problemas es la gran cantidad de propietarios semiprofesionales que compran para alquilar. Eso está provocando que se pierdan grandes cantidades de propiedades. » Se introdujeron unos impuestos para desincentivar los fondos de inversión —todos los inversores tendrán que pagar el mismo nivel de impuestos— y ahora los fondos se han ido a España, Portugal o Grecia. Sr. Jaime Palomera, representante del Sindicato de Inquilinas e Inquilinos » En los años noventa empezó, a escala global, una agenda política neoliberal que implicaba privatizar la vivienda pública y eliminar las regulaciones en la vivienda privada: la vivienda se convirtió en un activo financiero de primer orden. » Se ha demostrado un fracaso histórico de estas políticas de desregulación, y de todos los booms inmobiliarios basados en el aumento de la oferta y en la construcción. » La crítica habitual sobre la regulación de precios es que hace bajar la oferta, cosa que no es cierta, ya que esta oferta está constreñida por políticas, pero también por factores sociales y culturales. » Todas las políticas de vivienda se han orientado históricamente a priorizar la compra. » En San Francisco, en 1950, se hizo el control de precios y eso no frenó el aumento de la oferta; Dinamarca tiene un gran mercado de alquiler estable que regula precios desde 1979, y en www.barcelona.cat 131 Austria hay regulaciones del precio de la vivienda y del precio del suelo. » La regulación de Berlín (2015) es demasiado reciente para poder hacer una evaluación adecuada y, además, está llena de agujeros. Por eso, este 2020 se han congelado los precios y a finales de año hay prevista una bajada de estos. » En los países y las ciudades donde se eliminaron las regulaciones de precios en los años noventa, los precios se dispararon inmediatamente. » Las regulaciones del alquiler siempre van acompañadas de la extensión de los derechos colectivos. » La regulación de los alquileres no resuelve el problema de la vivienda, pero tampoco es el apocalipsis, y allí donde se hacen regulaciones la vida de quienes viven de alquiler mejora de manera inmediata, porque se ve mínimamente protegida. » En Francia y en Alemania hay una prórroga forzosa de los alquileres. » Para aumentar la oferta, hay que empezar por movilizar la vivienda vacía y por recuperar las miles de viviendas desviadas al turismo para convertirlas en alquileres estables. » Dinamarca, Austria, Francia y Alemania son referentes: tienen una mirada holística de todo el sistema de vivienda. » Se debe poner sobre la mesa el derecho a renovar el alquiler. » En Barcelona, como mínimo el 35 % de los tenedores son personas jurídicas, empresas, y de los particulares muchos son multipropietarios o grandes tenedores. Las personas que tienen un local o vivienda tienen unos ingresos medios de aproximadamente el doble de lo que ingresan los hogares inquilinos. » Se necesita una ley que haga del alquiler una opción de vida segura y estable. Sra. Elga Molina, responsable de la Oficina de Vivienda del Consejo Comarcal del Tarragonès y asesora jurídica en derecho inmobiliario » Las normas internacionales europeas establecen que el mercado de alquiler tendría que ser un mercado asequible, y en el informe de las Naciones Unidas se indica que debería plantearse muy seriamente la regulación de los precios del alquiler. » En Cataluña, como en el resto del país, hay un grave problema de asequibilidad del alquiler. » En el ámbito europeo, España es el séptimo país con respecto a la carga familiar que supone el alquiler. En los países con tasas de alquiler más elevadas y regulación de los precios, las tasas de esfuerzo familiar para el pago del alquiler son más bajas. » La regulación del alquiler tiene que ayudar a mejorar la asequibilidad y, a su vez, garantizar una rentabilidad suficiente para el arrendador. » Se deben buscar mecanismos para que los propietarios puedan sentirse cómodos con la regulación. » Se deben establecer sistemas que den respuesta a la diversidad de la demanda. » Hay que regular los precios del alquiler desde el punto de vista estructural y, también, elaborar programas que limiten aún más las rentas para los colectivos más vulnerables. » Hay que tener en cuenta el máximo de características del inmueble para fijar un precio de mercado. » La regulación debe centrarse en mejorar la asequibilidad del mercado privado y tener en cuenta lo que marcan las normativas internacionales. » La regulación de los alquileres ayudaría a mejorar la distribución de los recursos públicos, que deberían destinarse a las personas en una situación de vulnerabilidad más grave. www.barcelona.cat ANNEXE » Se debe regular una herramienta adecuada mediante el índice de precios de alquiler en Cataluña, y los precios tendrían que negociarlos las diversas entidades y administraciones públicas. » La regulación de precios aporta un alquiler estable. » La limitación de precios debe ir acompañada de una duración larga de los contratos; es buena para el inquilino y para el propietario, ya que asegura que los alquileres no quedan desfasados en el tiempo y que se actualizan los precios con la evolución del mercado. » Se deben revisar los sistemas de incentivos (reducciones del IRPF, bonificaciones, garantías y ayudas). » Hay un problema de oferta, pero también hay un problema de precios. Sr. Sergio Nasarre, director de la Cátedra UNESCO de Vivienda en la Universidad Rovira i Virgili » Según el Eurostat, algunos de los países que se toman como referentes (Gran Bretaña, Dinamarca, Alemania y Suiza) tienen una tasa de inasequibilidad mucho más alta que la media europea, mientras que España está por debajo. » En España, el alquiler privado tiene una inasequibilidad objetiva. No hay una correlación directa entre una renta referenciada y que la vivienda sea objetivamente asequible. » No es el control de la renta de alquileres lo que hace que haya más alquileres. » El alquiler siempre ha ido decreciendo, con la excepción de los últimos años, en que las personas no han tenido más remedio que alquilar porque no podían comprar. » Alemania tiene una sociedad de ricos propietarios y de pobres inquilinos. » El control de la renta es un elemento más dentro de un sistema equilibrado de alquileres; hay que buscar un equilibrio entre los propietarios y los inquilinos. » Si solo se modifica un elemento, se produce una huida por parte de los ofertantes. » En Alemania: » La Mietspiegel (voluntaria) ha funcionado como un sistema de contención de aumento de la renta en las grandes ciudades. » Del Mietpreisbremse (obligatorio) todavía no hay datos fidedignos para saber si funciona. » La Mietendeckel parece que produce algunos efectos, como la reducción de la oferta de alquiler. » Como no hay una discriminación por zonas, los más beneficiados en Berlín son los ricos que viven en el centro de la ciudad. » Ha habido un aumento de la venta de pisos, porque, cuando el alquiler no es rentable, lo que hacen los propietarios es vender sus pisos. » El alquiler tiene que ser funcional y una alternativa real a la propiedad. El 76 % de los inquilinos actuales desearían ser propietarios. Sr. Jaume Fornt, director adjunto de la Agencia de la Vivienda de Cataluña » En Cataluña hay un problema de accesibilidad a la vivienda de alquiler muy importante. » Se necesita regulación, pero también política fiscal y ayudas al pago del alquiler. » Las subidas del alquiler en Barcelona disminuyeron en el 2019. www.barcelona.cat 133 » Hay que evitar transposiciones automáticas de las regulaciones de otros países y tener en cuenta: » la distribución entre propiedad y alquiler, » la distribución de la estructura de la propiedad en Cataluña y en Barcelona, y » el índice de precios de alquiler. » Viena tiene un parque de 900.000 unidades de vivienda; de estas, 220.000 son de protección oficial y 120.000 más reciben alguna ayuda. Nada que ver con Barcelona. » Se debe evitar que se produzca un incremento del dinero negro del mercado de alquiler. » La reducción en el IRPF del alquiler habitual está indiferenciada. » Las administraciones públicas deben trabajar para conseguir inversores que busquen estabilidad con rentabilidades más bajas para invertir en el mercado de alquiler. Sra. Anna Puig-Pey, representante del Colegio Oficial de Arquitectos de Cataluña (COAC) » Debemos tener claro cómo queremos vivir y cómo tienen que ser nuestras viviendas. » La vivienda tiene: » varias funciones, que son la física y la psicológica (refugio y protección) y la económica (inversión, ahorro, comercio), y » problemas de tipo “macro”, como la segregación socioespacial y la estigmatización, el déficit de viviendas (oferta insuficiente) o la degradación del parque y el déficit de la rehabilitación. » Las políticas de vivienda implican regulaciones técnicas, regulaciones públicas de los agentes de mercado, legislación civil, políticas financieras, políticas fiscales, planeamiento urbanístico, ayudas públicas a promotores y consumidores, e intervención pública directa. » Se debe movilizar el suelo público que interesa trabajar con una colaboración público-privada. » El COAC propone que se hagan más de 100 concursos de arquitectura y promoción en suelo público para más de 2.500 viviendas. » Se necesita tecnología que haga más inteligente la vivienda y una arquitectura flexible y, en su caso, industrializada. » Cuando Europa habla de eficiencia energética, no habla de edificios sino de distritos y de ciudades. » No se puede hacer buena arquitectura sin tener muy clara la parte económica. Aportaciones a la comisión » Defender el derecho a la vivienda. La ciudad de Barcelona tiene que entender su obligación de respeto por los derechos humanos, uno de los cuales es el derecho a la vivienda, y la ciudad debe avanzar para hacerlo posible. Por lo tanto, hay que utilizar todas las herramientas que se tengan al alcance para hacer posible que las personas se mantengan en su vivienda. El control de los alquileres es un mecanismo que permite que las personas se puedan quedar en sus viviendas y, por lo tanto, ofrecer seguridad de tenencia. Así pues, si no se hace esta regulación, hay que tener muy claro por qué no se hace. » En Irlanda, se identificó la llegada de propietarios profesionales y semiprofesionales que www.barcelona.cat ANNEXE compraban viviendas a particulares, lo que afectaba a la subida de precios. Se modificó la legislación para que no tuviesen beneficios impositivos. Como consecuencia, estos propietarios se han ido a otros países como España, Portugal o Grecia. » La regulación de los precios de alquiler no ha implicado una reducción del parque de alquiler en los países donde se ha aplicado: » Dinamarca. Se aplica desde 1979 y el parque ha mejorado, y ahora se han congelado las rentas para evitar la entrada de fondos buitre. » San Francisco. Se aplicó en los años cincuenta y no se detectaron cambios en el volumen del parque de alquiler. » España. La desregulación de 1985 no hizo que aumentara el parque de alquiler, sino que siguió bajando. » Crear espacios de negociación entre la propiedad y las personas inquilinas. La ciudad de Nueva York es un referente en este sentido, ya que se crean representantes del bloque en casos de propiedad vertical. Los sistemas que mejor han funcionado son los que más han impulsado el pacto. » Establecer sistemas de mediación en caso de que la propiedad o las personas inquilinas consideren que la norma no es justa: » Suiza. Se ha definido el concepto de renta abusiva. En estos casos, la persona inquilina puede reclamar que se le baje la renta, y se empieza un proceso de mediación. » Francia. La propiedad puede reclamar que tiene la renta devaluada y se entra en una mediación. » Acompañar la regulación de precios con medidas para la estabilidad de las personas inquilinas y de incentivos a la propiedad. La asequibilidad tiene muchos factores, y cuando se toca un elemento, se pueden generar distorsiones. Se necesita una combinación y pensar muy bien los parámetros. » En Austria, Dinamarca y Alemania no se puede echar a la persona inquilina, ni subir el precio de una manera indiscriminada, si esta persona cumple sus obligaciones como tal. » Dinamarca. La renta se calcula así: costes mantenimiento + mejoras + beneficio razonable. » Aplicación en Cataluña: » Contratos de alquiler de larga duración + contención de rentas. » Ampliación de los incentivos a la propiedad (reducciones de impuestos por alquiler a determinados colectivos; aumento de garantías de pago —mejora del régimen Avalloguer—, aumento de las ayudas a la mejora de las viviendas). » Mejora del índice de precios de alquiler y aplicación del índice medio con medidas correctoras negociadas por las administraciones públicas y las asociaciones de personas propietarias e inquilinas. » Evaluar los resultados que se obtienen de la regulación y establecer mecanismos de corrección, de modo que el sistema pueda ir conteniendo las rentas si se encuentran fuera de la asequibilidad. » Berlín Tiene sistema de control de rentas desde 1990. » Hasta el 2015 era voluntario y se utilizaba ampliamente (90 % de los contratos). Se definían cuatro zonas geográficas, algunos parámetros correctores y muchas excepciones. Todo ello hacía que el sistema fuera demasiado subjetivo y no permitió alcanzar el control de rentas deseado. www.barcelona.cat 135 » En el 2019, se regula el incremento de la renta fruto de las mejoras, y pasa del 11 % al 8 %. » En enero del 2020 se aprueba la congelación de rentas durante cinco años. Hay un límite de 13 euros por metro cuadrado (actualmente, en Barcelona es de 14 euros por metro cuadrado). Aún no se puede evaluar si ha obtenido buenos resultados. Marco competencial y escenarios potenciales de regulación Diagnóstico Los días 9 y 10 de setiembre, el Parlamento de Cataluña aprobó la Proposición de ley de medidas urgentes en materia de contención de rentas en los contratos de arrendamiento de vivienda. Previamente, en el 2019, se había elaborado el Decreto ley 9/2019, de medidas urgentes en materia de contención de rentas en los contratos de arrendamiento de vivienda y de modificación del libro quinto del Código Civil de Cataluña en el ámbito de la prenda, que no fue ratificado. Esta sesión quiere aclarar las alternativas de regulación de los precios del alquiler a partir del análisis de cómo, por qué y quién tiene que hacerse cargo de elaborar la normativa dentro del ordenamiento jurídico vigente. Como documentos base para esta sesión, se han trasladado a los miembros de la comisión dos informes: » Un equilibrio justo: Los límites del TEDH a la regulación del precio de los alquileres, redactado por Andrei Quintiá Pastrana En este trabajo se analiza la jurisprudencia del Tribunal Europeo de Derechos Humanos sobre este tema para intentar construir una teoría sucinta de los límites de la regulación del precios de los alquileres. Esta extensa jurisprudencia nos permite construir un estándar mínimo de protección del derecho a la propiedad frente a los controles de las rentas. Este estándar se asienta en tres factores: » el examen de un equilibrio justo entre los intereses generales y el de los propietarios, reforzado con la aplicación de un juicio de proporcionalidad; » el respeto a un núcleo indisponible que parece encontrarse en torno a las cantidades necesarias para hacer frente al mantenimiento del inmueble y la relación proporcional a los valores de mercado, y » el respeto a una distribución justa de los costes de la política social de vivienda. Se llega a la siguiente conclusión: » Las medidas de limitación de los precios del alquiler son habituales en el contexto europeo y han estado presentes a lo largo de este siglo y del siglo pasado. » No obstante, su configuración está sujeta a unos límites fijados por el respeto al derecho de propiedad privada. » Pese a todo, el disfrute del derecho a la propiedad está limitado por la propia función social de la propiedad. » Por lo tanto, la regulación de los alquileres está sometida a la aplicación de un test de proporcionalidad, en el que se debe equilibrar la propiedad privada con la función www.barcelona.cat ANNEXE social de la propiedad. » DICTAMEN 4/2019, de 17 de junio, del Consejo de Garantías Estatutarias de Cataluña, sobre el Decreto ley 9/2019, de 21 de mayo, de medidas urgentes en materia de contención de rentas en los contratos de arrendamiento de vivienda y de modificación del libro quinto del Código Civil de Cataluña en el ámbito de la prenda El objetivo del dictamen es dirimir la constitucionalidad del Decreto ley 9/2019 y su colisión o no con la normativa estatal según las reglas de distribución competencial que establecen la Constitución española (CE) y el Estatuto de Autonomía de Cataluña (EAC). El Decreto ley 9/2019 (en adelante, decreto ley) quiere establecer una regulación propia del contrato de arrendamientos urbanos que supere las limitaciones de la legislación estatal vigente y que, entre otros, permite dotar “a las administraciones públicas de las herramientas necesarias para limitar los incrementos de precios del alquiler de viviendas en zonas de fuerte demanda acreditada”. El decreto ley califica la contención de rentas como una medida restrictiva excepcional y limitada en el tiempo, mientras no se lleven a cabo las políticas públicas que atenúen o reviertan la situación crítica del mercado de alquiler. Así pues, dice, se trata de una acción normativa congruente con la configuración constitucional del derecho a la propiedad (art. 33 CE) e instrumental para contribuir a la efectividad del derecho a disfrutar de una vivienda digna y adecuada (art. 47 CE), que “busca un equilibrio razonable entre el deber de respeto del interés patrimonial del arrendador y la función social de la propiedad urbana”. El decreto ley también prevé que, en ejercicio de su competencia en derecho civil (art. 129 EAC), el Gobierno presentará más adelante al Parlamento, en el plazo de seis meses, una regulación integral de los contratos de arrendamiento de fincas urbanas, que pasará a formar parte del libro sexto del Código Civil de Cataluña. El Consejo de Garantías Estatutarias de Cataluña llega a siguiente la conclusión: » La Generalitat de Catalunya es competente para regular el contrato de arrendamiento de vivienda, total o parcialmente, pero con el límite de que dicha regulación no contradiga las bases de las obligaciones contractuales establecidas por el legislador estatal. » En la vigente legislación estatal de los arrendamientos urbanos, con respecto a la determinación de la renta, rige el principio de libertad de pactos (art. 17.1 LAU), el cual está en íntima conexión con el de libertad de contratación (art. 1255 Código Civil español). » El régimen de contención de rentas que configura el decreto ley establece limitaciones a la fijación de los alquileres para contratos celebrados en determinadas áreas del territorio, que chocan con el principio de libertad de estipulación de la renta que actualmente caracteriza a la legislación estatal sobre arrendamientos urbanos (art. 17.1). www.barcelona.cat 137 Síntesis del debate Sr. Xavier Bernadí, doctor en Derecho, director general de Derecho y de Entidades Jurídicas en el Departamento de Justicia » Una política de contención de rentas afecta al derecho de propiedad, por lo tanto, se tiene que establecer mediante una ley, y se debe valorar la idoneidad o la legitimidad de una norma con rango de ley, es decir, la constitucionalidad. » A la constitucionalidad se podrían hacer dos tipos de objeciones: por motivos sustantivos o de fondo y por motivos competenciales. » Motivos sustantivos: el acuerdo es bastante amplio si la cuestión se analiza a partir de la propia jurisprudencia del Tribunal Europeo de Derechos Humanos. Una política normativa de contención de rentas especialmente respetuosa con el principio de proporcionalidad y de carácter no expropiador tiene que ser plenamente compatible con esta función social del derecho. » Motivos competenciales: lo primero que se debe hacer es concretar si la competencia es estatal o autonómica y, para hacerlo, antes hay que especificar de qué materia forma parte la contención de rentas (si se situaría en materia de vivienda, de derecho civil o de regulación económica). » El derecho no es una ciencia exacta, y las normas que hacen referencia a la distribución de competencias, aún menos. » La competencia exclusiva de la Generalitat de Catalunya, recogida en el artículo 129 del Estatuto de Autonomía, sobre el derecho civil de Cataluña, ampara una regulación orientada a contener las rentas de los alquileres. » El Consejo de Garantías llega a la conclusión de que tanto las reglas relativas a la duración del contrato de arrendamiento como las relativas a la renta o al precio son bases de las obligaciones contractuales. Como el Estado no ha identificado estas bases desde un punto de vista formal, se puede considerar competencia de la Generalitat, y nada impediría la aprobación y la entrada en vigor de la ley. » Si el Estado otorgara carácter formal de base al artículo 17.1 de la Ley de arrendamientos urbanos o al artículo 1255 del Código Civil español, la legislación catalana quedaría desplazada, no derogada ni invalidada. » El legislador catalán debe tener una presunción de constitucionalidad o de estatutoriedad. » El Estado podría habilitar al legislador catalán modificando el artículo 17 de la LAU y admitiendo la contención de rentas o, mediante el artículo 150 de la Constitución, dictando una ley que habilite a las comunidades autónomas a dictar sus normas. » Negar las competencias al legislador catalán, llevaría a la conclusión institucional (no jurídica) de Cataluña ya repetida, en que ni le permiten hacer una regulación ni el Estado la saca adelante. Pero habría muchos mecanismos para hacer posible que el poder estatal habilitase a la Generalitat de Catalunya a sacar adelante esta regulación. » Cuando se habla de la constitucionalidad o inconstitucionalidad de algo, lo que se está preguntando es qué diría el Tribunal Constitucional si le llegase ese caso. El Tribunal Constitucional no actúa de oficio, sino impulsado por el Gobierno estatal o por la oposición. » El Consejo de Garantías Estatutarias entiende que Cataluña no tiene suficientes competencias al deducir que hay una base estatal de libertad de fijación de renta no formalizada; ahora bien, remarca la competencia (de gran envergadura) para regular los contratos de arrendamiento de www.barcelona.cat ANNEXE vivienda. » Si la competencia catalana no es suficiente para regular la contención de renta, hay mecanismos constitucionales para hacerla encajar, y se pueden promover habilitaciones estatales. Sra. Esther Arroyo, catedrática de Derecho Civil por la Universidad de Barcelona y de la Cátedra Jean Monnet de Derecho Privado Europeo » La regulación de alquileres pone de manifiesto el problema del acceso a la vivienda que tenemos en las áreas densamente pobladas. Que Cataluña se plantee ponerle remedio no es solo legítimo, sino que también es un deber. » Para establecer la ley de regulación de rentas con ciertas garantías, existen dos vías: la competencia de vivienda y la competencia civil. » Hay un vínculo con la tradición jurídica catalana: la legislación republicana regulaba los arrendamientos mediante decreto (junio y agosto de 1936), y no la contención de rentas, sino su fulminante rebaja. » Después hay competencia civil, pero el problema es que, en materia civil, la comunidad autónoma no tiene la competencia absoluta para regularlo todo, sino que ha determinado materias que pertenecen al Estado, como las bases de las obligaciones contractuales. Ahora bien, nadie sabe exactamente qué quieren decir, porque el Estado nunca ha fijado estas bases y, por lo tanto, hay que inferirlas de la legislación estatal vigente. » En Cataluña siempre ha regido el principio de la rescisión por lesión en contratos onerosos: si se puede impugnar un contrato cuando el precio es abusivo, de entrada se debe poder establecer un límite para evitar que el precio sea abusivo. » Las bases de las obligaciones contractuales se definen como lo que es esencial, que debe funcionar como criterio general para todos los contratos para garantizar una unidad de regulación a favor de la universalidad del tráfico económico. La pregunta es: ¿hay universalidad de tráfico económico en el mercado de los arrendamientos, un mercado que, por definición, no es unitario? » ¿Hasta qué punto se puede afectar a la propiedad de las personas que dan en arrendamiento sus inmuebles? Cabe recordar que la propiedad no se puede entender de una manera absoluta, ya que está subordinada a su función social. Si la regulación es equilibrada y no genera pérdidas sostenidas e indefinidas, se admite, sin muchos problemas, que el legislador puede intervenir en el mercado regulando la renta. » Cuando se habla de contención de renta, no se habla necesariamente de congelación de la renta en un contrato indefinido. » No es una cuestión de “contención sí o no”, sino de qué contención se está proponiendo. Sr. Domènec Sibina, profesor titular de Derecho Administrativo de la Universidad de Barcelona » Primera idea: hay una enorme complejidad y mixtura del marco normativo. » Segunda idea: siempre que se habla de la contención de renta y de la responsabilidad del propietario de ayudar a satisfacer el derecho a la vivienda, se pone en el otro lado de la balanza cuál es la actuación pública necesaria para garantizar este derecho, pero no se dice que las políticas de vivienda, entre 1980 y el 2013, han servido para ayudar a los promotores www.barcelona.cat 139 inmobiliarios a encontrar compradores. » En el 2007, empezó una caída del mercado que hace que la vivienda protegida sea prácticamente inexistente. » Las políticas de vivienda iban ligadas a una política de crecimiento inmobiliario. » La vivienda protegida iba destinada a las clases medias, no a las necesitadas. » Desde el 2013, se hace política de servicios sociales, se cubre la emergencia, y la política de vivienda decae, porque se fundamentaba en el crecimiento exponencial del mercado inmobiliario. » Tercera idea: el Real decreto ley 7/2019 ampliaba los periodos de duración de los contratos, solidificaba los derechos del arrendatario e introdujo los índices de referencia como medida de fomento, quien no los cumple no recibe ayudas. El índice de referencia es una técnica muy relevante, sin embargo, si no refleja realmente el mercado, acaba siendo un obstáculo y no una solución. » Cuarta idea: las normas comparadas. Desde el punto de vista sustantivo, la regulación y la contención de renta entran en la doctrina del Tribunal Europeo de Derechos Humanos, el Tribunal de Justicia y el Tribunal Constitucional. » Conclusión: desde el punto de vista sustantivo, se plantearían menos problemas, mientras que desde el punto de vista competencial, si se busca un encaje constitucional, tendría que ser con un acuerdo con las decisiones que tomara el Gobierno del Estado. Sr. Josep Ferrer, catedrático de Derecho Civil por la Universidad Pompeu Fabra » La determinación del precio de los contratos de alquiler es una parte esencial de la regulación del contrato y, por lo tanto, del derecho civil. » La Generalitat de Catalunya tiene competencias sobre el derecho civil, limitadas al propio título competencial en algunos aspectos, entre los que se encuentran las bases de las obligaciones contractuales. » El Consejo de Garantías Estatutarias, con el dictamen del 2019, consideró que el decreto ley (el primero) era inconstitucional por el hecho de infringir las bases de las obligaciones contractuales. » El Tribunal Constitucional dictó la sentencia 132/2019, que resuelve el recurso contra el libro sexto del Código Civil de Cataluña, que hace pensar que puede regular los contratos de arrendamiento, incluido el de arrendamiento de vivienda, y también concluye, con poco margen de duda, que una regulación catalana de los precios del alquiler en los contratos entre particulares puede ser declarada inconstitucional. » Que se cuestione la competencia de los niveles de gobierno subestatales para dictar este tipo de normas no es exclusivo de este país y ha pasado también en Berlín, que es un Land. » Proceder por medio de una iniciativa coordinada con el Estado daría mucha más seguridad. » Se debe respetar el contenido esencial de la propiedad. » Hay una cierta “expropiación” del grado de beneficio que pueden obtener los titulares de viviendas. Sr. Héctor Simón, profesor de Derecho Civil y miembro de la Cátedra UNESCO de Vivienda de la Universidad Rovira i Virgili www.barcelona.cat ANNEXE » Cataluña tiene competencia sobre vivienda, pero la contención de las rentas forma parte de la competencia en materia civil. » En relación con las bases de las obligaciones contractuales, una amplia regulación de los arrendamientos urbanos no afectaría a los principios generales de la contratación (Código Civil) ni a los principios económicos constitucionales ni al tono original del contrato o de las obligaciones. » Las bases solo definen lo esencial; uno se puede preguntar si hay universalidad en el tráfico económico en el mercado de alquiler. » A pesar de estos argumentos para defender la competencia del Código Civil de Cataluña, el Tribunal Constitucional se podría acoger a esta normativa básica y a reglas que incidan directamente en la organización económica, en las relaciones entre las partes y en la economía interna de los contratos para declarar inconstitucional la norma. Con una negociación de competencias o con una regulación por parte del legislador estatal, se podría poner fin al problema. » Hay varios niveles de renta según la intrusividad: » La renta inicial es libre y las actualizaciones también son libres. » La renta inicial es libre y hay un espejo de renta voluntario para las actualizaciones que consiste en un sistema de actualización de rentas libre (modelo alemán hasta el 2015). » La renta inicial es libre y hay un sistema de actualización de rentas obligatorio, un sistema de actualización que podría elaborarse de acuerdo con un sistema de espejo de renta (no hay ejemplos) o con un índice como el IPC o el índice de garantía de competitividad. » Un sistema de freno de renta obligatorio en determinadas ciudades y de actualización de rentas de libre elección. » Un sistema de freno de renta obligatorio para determinar la renta inicial, así como un sistema de actualización obligatorio de las rentas de acuerdo con un sistema de espejo de renta (no hay ejemplos) con un índice como el IPC o el índice de garantía de competitividad. » Los sistemas más intrusivos pueden tener repercusiones o resultados contraproducentes, pueden afectar a las rehabilitaciones de los inmuebles o a la oferta de inmuebles en el mercado privado del alquiler, y dar lugar a un aumento de inmuebles en alquiler en el mercado negro, mientras que un mecanismo más blando, que diera más libertad a las partes y que fuese menos intrusivo, podría ser una vía adecuada para regular o contener los precios de las rentas del alquiler. » Optar por un control de rentas fomenta que los alquileres sean una alternativa real a la vivienda en propiedad, pero, de forma ideal, debería ir acompañada de una regulación de los arrendamientos en Cataluña. » Se debería intentar conseguir un consenso tanto de propietarios como de inquilinos para que todo el mundo se sintiese cómodo con una limitación de renta. Sr. Joan Ràfols i Esteve, presidente de la Cámara de la Propiedad Urbana de Barcelona » En España, la Ley de 1994 fue poniendo fin, muy gradualmente, al régimen antiguo, se descontrolaron los alquileres y no se instrumentó la parte de la política social. » Siempre se consideró que la legislación sobre arrendamientos era competencia estatal, con el www.barcelona.cat 141 argumento de las bases de ordenación general de la economía y del gran impacto que tenía el sector de la vivienda en la economía del país. » El Tribunal Constitucional decía que el marco de contención de renta debía ser temporal e ir acompañado de políticas de promoción del incremento del parque de vivienda, tanto en alquiler como en venta. » Cuando hay más demanda que oferta, los precios siempre acaban ajustándose. » La ley de control de rentas catalana es mejorable, ya que hay áreas tensas donde no hay tensión real. Además, no da una solución a las familias que no pueden pagar ningún tipo de alquiler. » La oportunidad de un proyecto de ley así, en un momento en el que los precios ya tenían cierta tendencia a moderarse y a bajar, es dudosa. » Se necesita una política de vivienda que analice qué pasa con el alquiler y qué se puede hacer para incrementar el parque. » Cuando en Alemania se elaboran políticas de control de rentas, se establecen dentro del contexto general de la política económica de vivienda y siempre incorporan elementos de política social para los colectivos en situación de vulnerabilidad. » El proyecto de ley técnicamente tiene problemas, como, por ejemplo, con respecto a la repercusión de obras, qué es una renta o cuál es la renta. Sr. Pol Borrellas, investigador titular del Instituto Ostrom Catalunya, economista y graduado en International Business Economics por la Universidad Pompeu Fabra » Efectos esperables de la regulación de los precios del alquiler: » Regulará la oferta. » Aumentará el riesgo de aparición de una economía sumergida. » Provocará una presión alcista de los precios en las zonas no reguladas. » Empobrecerá el mantenimiento de los inmuebles para compensar la reducción del retorno. » Surgirán efectos secundarios como la discriminación de los arrendatarios de renta más baja, la disminución de la movilidad laboral y la distribución ineficiente de los recursos. » Razones por las que se esperan efectos perniciosos: » Hay falta de oferta; se necesitan incentivos para destinar más viviendas al alquiler, y una fuerte regulación contractual por las cláusulas que sufre el mercado de alquiler y las restricciones y retrasos en los procesos de desahucios, lo que provoca inseguridad en los propietarios al poner en alquiler sus inmuebles. » Los propietarios ya no pueden compensar el aumento del riesgo con una renta más alta, de modo que les quedan tres opciones: reducir mucho el mantenimiento del inmueble, pasar a la economía sumergida o sacar el piso del mercado de alquiler. » Hay un atrincheramiento laboral por el cual las personas no se mueven a otra ciudad para aceptar un nuevo trabajo. » Al regular los precios, quienes quieran pagar más por estar en un determinado lugar no podrán acceder a este. » Evidencia empírica sobre este razonamiento: » En San Francisco, la regulación de esta ciudad californiana provocó una disminución www.barcelona.cat ANNEXE de la oferta del 15 %. » En Estocolmo, el Ayuntamiento controla los precios de facto, y la media de espera para acceder a una vivienda con precios controlados es de ocho años, aproximadamente. » Soluciones para facilitar el acceso a la vivienda y evitar el riesgo de exclusión habitacional a largo plazo y sin dañar la oferta: » Revocar la regulación contractual. » Garantizar la seguridad jurídica. » Simplificar los requerimientos urbanísticos. » Conseguir un sistema judicial eficiente. » La Administración pública debe hacerse cargo de los casos de emergencia habitacional. Aportaciones a la comisión » Cualquier tipo de regulación de precios de alquiler que se quiera establecer se debe hacer de acuerdo con el derecho. Eso significa que: » en el ámbito competencial, tiene que ser la administración competente la que regule, y, » en el ámbito sustantivo, la regulación se debe adecuar al ordenamiento jurídico. » Con respecto al debate competencial, a la comisión se han presentado tres posiciones sobre si el Parlamento catalán tiene competencia para regular los precios de alquiler por medio del derecho civil catalán: » Una de las posiciones argumenta que las normas sobre fijación de la renta en el arrendamiento de viviendas pertenecen al derecho civil y, por lo tanto, aprobarlas compete al Estado (art. 149.1.8 CE). Es necesario respetar la competencia estatal para dictar las bases de las obligaciones contractuales —entendidas como “una garantía estructural del mercado único”— y las “reglas que incidan directamente en la organización económica y en la economía interna de los contratos”, incluyendo la libertad de contratación. Por lo tanto, es dudoso que las comunidades autónomas, con competencia para desplegar su derecho civil propio, puedan dictar disposiciones en esta materia. » Otra posición argumenta que la competencia exclusiva de la Generalitat de Catalunya, recogida en el artículo 129 del Estatuto de Autonomía, sobre el derecho civil de Cataluña, ampara una regulación orientada a contener las rentas de los alquileres; por lo tanto, esta se puede considerar una competencia de la Generalitat especialmente porque el Estado no ha identificado las bases desde un punto de vista formal y, por eso, nada impediría que esta ley se aprobase y entrara en vigor. » Una tercera posición indica que las bases de la regulación las tiene que establecer el Estado, pero como no lo ha hecho, Cataluña puede establecer una regulación que quedaría desplazada en caso de que el Estado estableciera estas bases. » Si se acepta la necesidad de una regulación estatal para encontrar acomodo constitucional a eso en nuestro ordenamiento jurídico, esta regulación se puede dar mediante tres fórmulas: » Una habilitación estatal (art. 150 CE) para que las comunidades autónomas o los municipios regulen un sistema de contención en los contratos de arrendamiento de vivienda permanente. » Una modificación de la legislación de arrendamientos vigente (art. 17 LAU), en el www.barcelona.cat 143 sentido de admitir la contención de rentas. » Directamente una regulación estatal. » En la regulación catalana existe el concepto de rescisión por lesión, es decir, se puede impugnar un contrato en caso de que se considere abusivo. Por lo tanto, se debería poder impugnar un contrato que establezca un precio de alquiler que sea abusivo. » Con respecto al debate sustantivo, la regulación de los precios de alquiler encuentra acomodo en el ordenamiento jurídico vigente en virtud de la función social de la propiedad (art. 33.2 CE). No obstante, todo dependerá del test de proporcionalidad, dado que la contención de los precios de alquiler debe garantizar un beneficio razonable para el arrendador, porque, en caso contrario, podría suponer una vulneración de su derecho de propiedad privada. Impactos sociales, económicos y urbanísticos de las regulaciones de los precios de los alquileres en Barcelona y en el área metropolitana Diagnóstico La regulación de los alquileres se ha producido en Europa desde los años veinte del siglo pasado. Esta regulación ha pasado por varias fases en las que han ido variando los objetivos y, por lo tanto, también sus efectos. Además, en algunos casos se han establecido medidas complementarias para reducir los posibles efectos negativos. » Primera generación: se introdujeron en Europa y en los Estados Unidos a raíz de los periodos de crisis social generados por la Primera Guerra Mundial y la Segunda Guerra Mundial. La medida permitía actuar de una manera inmediata sobre el bienestar de los hogares arrendatarios sin requerir un coste presupuestario elevado. Estos controles se mantuvieron posteriormente para las viviendas más antiguas en muchos de los Estados, que solo permitían incrementos periódicos para mitigar el alza de los costes de mantenimiento. En el caso de España, la congelación de rentas de alquiler y el carácter indefinido de los contratos, los introdujo la Ley de arrendamientos urbanos de 1946, si bien el Real decreto de 21 de junio de 1920 (decreto Bugallal) ya había congelado las rentas del alquiler. » Segunda generación: tiene lugar en la década de los setenta y se caracteriza por introducir límites al crecimiento de las rentas del alquiler. Esta tipología era muy heterogénea entre países y ciudades, los cuales podían permitir una actualización limitada de las rentas cuando se producía un cambio de persona inquilina, o bien hacerlo de manera periódica. En algunos casos, también se permitía introducir cláusulas de compensación a la propiedad en caso de incrementos en los costes de mantenimiento, o se le garantizaba un retorno mínimo. Estas regulaciones tendían a aplicarse únicamente sobre el parque existente en el momento de su entrada en vigor. » Tercera generación: en los últimos años, el aumento desproporcionado de los precios en buena parte de las grandes ciudades ha supuesto un resurgimiento de las demandas sociales que reclaman el establecimiento de límites al precio de los alquileres. En general, en los países donde se ha establecido una regulación, se destaca que la regulación permite la reducción de los precios y la estabilidad del vecindario, y que supone una muy baja inversión pública y unos costes de gestión muy pequeños en comparación con los beneficios que genera para las personas inquilinas. Sea como fuere, en todos los casos se han detectado efectos tanto positivos como negativos. www.barcelona.cat ANNEXE Efectos positivos » Mejora del bienestar de las personas inquilinas afectadas por la medida: » Más asequibilidad de la vivienda. » Más renta disponible. » Más estabilidad. Reducción de la incertidumbre en la toma de decisiones laborales y de consumo de los arrendatarios. » Protección de las personas inquilinas ante la posibilidad de desahucios y desplazamientos no deseados. » Más capital social acumulado en la comunidad. » Más simetría entre propiedad e inquilinato. » Política redistributiva cuando el sistema beneficia a los hogares más vulnerables. » Permite mantener la mixtura social. Efectos negativos » No se dirige específicamente a los hogares más vulnerables, sino que beneficia a un amplio espectro de la sociedad. Este hecho no tiene por qué ser negativo si todo el mundo tiene acceso al control de los alquileres. » Se reduce la oferta de alquiler, tanto por transferencia hacia compraventa como por una reducción en la inversión en construcción y rehabilitación que podría generar un aumento de precios en el mercado libre. En los informes americanos se señala que no se ha producido una reducción de la oferta en la obra nueva y que la conversión de alquiler a compraventa se puede limitar mediante ordenanzas locales (como ya hacen la mayoría de ciudades de California que aplican la regulación de alquileres). » Se reduce la inversión en mantenimiento y en renovación de las viviendas. Se podría mitigar con ayudas u ordenanzas que impulsaran esta rehabilitación, así como mediante mecanismos disciplinarios que garanticen la habitabilidad. Síntesis del debate Sr. Jordi Bosch i Meda, doctor en Arquitectura, licenciado en Ciencias Políticas y codirector del Posgrado de Políticas de Vivienda de la Escuela Sert » La incidencia de las medidas de control de los alquileres depende del contexto. » En los controles de los alquileres, son muy importantes el diseño y la gestión de la medida. ¿Cuál es el objetivo que se pretende conseguir con este control de alquileres: moderar el incremento de precios o aumentar la oferta de vivienda asequible? » El sistema de vivienda es un concepto de las teorías de política de vivienda que consiste en la interacción del mercado, es decir, en la oferta, la demanda y la intervención pública directa e indirecta. » El control de los alquileres es solo una pieza del puzle de este sistema de vivienda. » Una primera consecuencia obvia del control de los alquileres es la mejora de la seguridad de los inquilinos. A corto plazo, no se produciría tanto una mejora de la seguridad como una congelación de la problemática. A medio y largo plazo, si el incremento de los precios está muy por debajo del mercado, parte de este alquiler controlado pasaría a ser una oferta más o menos www.barcelona.cat 145 asequible. » La mejora en la accesibilidad tiene un efecto positivo en los presupuestos de las familias y, por lo tanto, repercutiría positivamente en la economía. » Riesgos: » Posibilidad de que se expandan el mercado negro y las prácticas abusivas. » Agravamiento de la demanda de alquiler no protegida. » Riesgo de la reducción de la oferta de alquiler. » Riesgo de degradación del parque residencial. » Riesgo de que se produzca un proceso de discriminación y de filtraje. » Desequilibrio en la implantación del control del alquiler. » Prácticas abusivas del mercado negro que pueden socavar la cohesión social. » Se necesita una planificación territorial temporal y la coordinación con otras medidas de política de vivienda. » Sería interesante planear la posible gestión pública del alquiler privado, con un proceso de adjudicación entre inquilinos y propietarios. » Un elemento clave en el conjunto de los controles de rentas es toda la normativa de arrendamientos urbanos. En muchos países, el control de alquileres va ligado a la posibilidad de que el inquilino tenga más condiciones de estabilidad. » En cuanto al sistema de vivienda, el control de alquileres a escala territorial, con respecto a un espacio tan concreto como el metropolitano, se tiene que planificar. » Son necesarias medidas de fomento de la rehabilitación para evitar la degradación. » Sería necesaria una combinación de incentivos más un sistema de control y sanción, y la gestión pública directa o indirecta, para evitar el mercado negro y los procesos de filtraje. » Se debe garantizar un beneficio razonable al propietario. » Se debe planificar a escala territorial y no solo “macro”, para mejorar la cohesión social. » Para conocer los impactos, las externalidades y las disfunciones, tenemos que saber cómo se puede hacer el seguimiento, la evaluación y, en su caso, la revisión y planificación del instrumento y de todas las políticas de vivienda. » Se puede mejorar la coordinación del instrumento con otras políticas. Sra. Leilani Farha, relatora de las Naciones Unidas sobre vivienda adecuada entre el 2014 y el 2020, y directora de “The Shift” » Es muy fácil extraer la política de vivienda de la realidad, de las luchas del día a día. » Más de doscientas ciudades de los Estados Unidos tienen una forma de control de los alquileres; Francia, a raíz de la pandemia, ha extendido el control de los alquileres a 28 ciudades más, aparte de París; Berlín intenta imponer una congelación de los alquileres, y Dinamarca ha seguido un camino muy similar. » El control de los alquileres por sí solo no inhibe la oferta de alquiler. Es la manera en que se estructura el control de estos alquileres lo que podría comportar menos viviendas en el mercado. » El control tiene que ir orientado a asegurar que los inquilinos puedan seguir pagando el alquiler en las comunidades donde quieren vivir. Lo que se debe controlar es que la oferta de alquiler actual no se convierta en oferta de propiedad para evitar el control. » Se debe incentivar la construcción de viviendas sostenibles y asequibles. » Las preguntas que debemos hacernos son: ¿Qué es el mercado?, ¿existe el mercado de forma www.barcelona.cat ANNEXE separada a los inquilinos y a su capacidad de poder pagar los alquileres? Desde la perspectiva de los derechos humanos, el mercado debería estar determinado por las personas que necesitan un alquiler y que no tienen dinero para pagarlo. Las personas y los Gobiernos son el mercado. » El control de los alquileres promueve el bienestar social, porque permite a los individuos y a las familias seguir viviendo en sus hogares y en sus comunidades de manera continuada. » La conceptualización del control de los alquileres dentro de una sociedad hace que esta salga más beneficiada, y es un beneficio social que hace que los hogares sean mucho más que ganancias o beneficios. » La ciudad de Barcelona debe seguir avanzando para garantizar que las personas tengan derecho a una vivienda digna. Se deben buscar todos los medios disponibles para asegurarlo a los más necesitados, y el control del alquiler es una de estas medidas. » El derecho internacional sobre derechos humanos dice que hay que buscar todas las herramientas a nuestro alcance para asegurar que las personas puedan quedarse en sus hogares y, en este sentido, el control ayuda. » El control de los alquileres es una herramienta importante y, por lo tanto, si se rechaza, se deben tener muy buenas razones para hacerlo. » La medida tiene que coexistir con toda una serie de medidas adicionales. » Los derechos humanos son la mayor de las prioridades, motivo por el cual el derecho a la vivienda se ubica en un ámbito totalmente diferente al de los derechos de propiedad o al de los derechos de los actores financieros para sacar un beneficio. Sr. Luis Zarapuz, economista del Gabinete Económico de Comisiones Obreras » El acceso a una vivienda, principalmente en las grandes ciudades como Madrid o Barcelona, representa un volumen de recursos importante para las clases trabajadoras. » Las generaciones mejor preparadas de la historia tienen que destinar gran parte de sus recursos y de su tiempo no a formarse ni a mejorar su capital y su cualificación, sino a pagar unos gastos de vivienda cada vez más elevados. » El sistema financiero español se basa en las garantías físicas hipotecarias, la concesión de hipotecas o el negocio de la construcción. En lugar de estar orientado hacia la economía productiva y la financiación del emprendimiento o hacia los nuevos proyectos de la economía digital, sigue anclado en garantías físicas. » La propuesta sindical abordaba dos ejes complementarios: a corto plazo, el fomento de la regulación del mercado del alquiler, y a medio y largo plazo, el desarrollo de un parque público de vivienda asequible y social. » Comisiones Obreras y la UGT apuestan claramente por la limitación del precio máximo del alquiler en las zonas tensionadas. Debe ser una regulación de ámbito estatal, no solo en relación con los incrementos del precio del alquiler en las zonas tensionadas, sino también con respecto al nivel del alquiler de estas zonas, y que lo vincule a un porcentaje de los ingresos de la población que allí vive. » Limitar la regulación del precio de la vivienda o actuar sobre ella tiene sus efectos. Los propietarios pueden buscar alternativas para la vivienda para tratar de escapar de la regulación. » Estas son algunas propuestas para intentar resolver externalidades negativas del control de rentas: www.barcelona.cat 147 » Elaborar un programa de alquiler seguro y asequible. » Ofrecer incentivos fiscales para actuar sobre las viviendas vacías. » Limitar o regular el destino de las viviendas turísticas en zonas tensionadas. » Desarrollar el eje estructural de constituir una oferta pública de vivienda social o de vivienda del parque público de alquiler. » A corto plazo, es necesario un control de los alquileres en las grandes ciudades como Barcelona. » La regulación puede tener consecuencias negativas, pero las consecuencias negativas estructurales son las que sufre la población en estos momentos. » Disponer de indicadores fiables y oficiales es clave para conocer la composición y la evolución del mercado del alquiler y diseñar las políticas públicas. Sr. Stephen Barton, doctor en Planificación Urbana y Regional por la Universidad de California y exdirector de Vivienda de la ciudad de Berkeley » Tres ideas principales: » El control de los alquileres es la única política pública que puede ponerse en marcha rápidamente para proporcionar a los inquilinos la posibilidad de acceder a un alojamiento estable. » Un buen sistema de control de alquileres no impide que se pueda obtener una renta mediante los alquileres y, en cambio, aumenta el resultado de la demanda social en un lugar concreto. » Los controles de alquiler deberían ser parte de programas de vivienda más extensos. » Por qué hay que controlar los alquileres: » Porque el control de los alquileres ofrece a los inquilinos estabilidad en el lugar donde residen. » Porque se puede poner en marcha de manera rápida, con unos beneficios inmediatos y un gasto público moderado. » Porque los costes humanos del desplazamiento son muy duros cuando hay movimientos forzados: las familias deben abandonar la zona donde están sus amigos, su familia, su médico de confianza o la escuela de sus hijos. » Con respecto a la parte económica, el control de los alquileres residenciales combina dos factores: un edificio físico y la ubicación. » Las regulaciones que limitan una renta que no se percibe o una imposición fiscal que recaptura esta renta no tienen efectos negativos en las actividades productivas. » Un sistema del control de los alquileres bien diseñado tiene que permitir a los propietarios obtener un beneficio razonable del mantenimiento y funcionamiento de los edificios, a la vez que se limitan las rentas. » Es importante que los controles de los alquileres formen parte de un programa más amplio de vivienda. » Es primordial que haya sistemas de emergencia y de ayuda al alquiler durante periodos de desempleo. » Cuando el edificio debe rehabilitarse, se tiene que permitir a los propietarios subir el alquiler para cubrir este coste y, además, debe haber algún tipo de subsidio para el inquilino o para el www.barcelona.cat ANNEXE propietario. » La regulación de los alquileres tiene poco o ningún efecto en la construcción. » Esta regulación debería evitar los abusos tanto de los inquilinos como de los propietarios. » La regulación del alquiler puede proporcionar beneficios sustanciales y significativos tanto para los inquilinos como para las comunidades donde viven, aunque estos beneficios no estén valorados ni reconocidos por el mercado. Sr. Josep Maria Vilanova, representante del COAC y profesor del Departamento de Urbanismo y Ordenación del Territorio de la Universidad Politécnica de Cataluña » En el 2007, el sistema de inversiones inmobiliarias se desplomó y, del 2007 al 2009, el número de viviendas proyectadas cayó un 97 %. » ¿Qué significa el mercado de alquiler, qué características tiene y qué puede pasar con la entrada de la regulación de los alquileres en Barcelona? » El mercado residencial no es la oferta, sino lo que realmente resuelve las necesidades de vivienda. Se dispone de los datos y las estadísticas sobre el funcionamiento real del mercado. » En el caso concreto de Barcelona, el mercado inmobiliario ha funcionado, fundamentalmente, a partir del alquiler, a diferencia del conjunto de Cataluña. » En Barcelona, tres de cada cuatro soluciones de vivienda tienen lugar por medio del alquiler, ya que Barcelona tiene el parque de vivienda disponible de alquiler más importante de Cataluña. » Desde 1994, el mercado del alquiler funciona bajo la Ley de arrendamientos urbanos, que permitió una actualización muy importante de los precios del alquiler, pero los edificios no han mejorado sustantivamente durante estos 25 años. » Existe la necesidad de que los edificios y las viviendas de Barcelona incorporen unas mejoras ambientales importantísimas. El 40 % de la huella ecológica del país proviene de la ineficiencia energética de los edificios. » El alquiler en Barcelona es central en cualquier política de vivienda. Por lo tanto, la medida de controlar los alquileres es fundamental. » Los precios del alquiler en el periodo 1994-2019 aumentaron un 180 % nominal. Traducido a euros constantes, el incremento es del 60 % en 25 años. » Este grave problema tiene su reflejo más dramático en el mantenimiento de unas tasas de desahucio inaceptables socialmente, que no se deben tanto al incremento del precio del alquiler como a la reducción de las rentas. » Será necesario tener en cuenta la incidencia de los derechos humanos sobre las políticas de vivienda y urbanísticas que deben desarrollarse en un futuro y, por otra parte, el hecho de que en el control de los alquileres es primordial la relación entre el precio del alquiler y la renta de la población. » Se debe crear un parque de vivienda asequible, vivienda social, sobre todo para las capas más débiles. » Se debería pasar del 0,1 % del PIB de Cataluña y España, al 0,6 %, que es la media de la Unión Europea. » En el precio del alquiler es muy importante el emplazamiento. Los lugares son únicos y no se pueden reproducir. » No hay una correlación entre inversión y rentas, pero eso es así desde 1994, y pasa también con el urbanismo y el suelo, en los que no hay correlación directa entre valores de suelo e www.barcelona.cat 149 inversión real hecha. Sra. Montserrat Junyent, jefa de la Asesoría Jurídica del Colegio de Agentes de la Propiedad Inmobiliaria de Cataluña y presidenta de la Federación de Asociaciones de Empresas Inmobiliarias » No valora positivamente la norma, especialmente por cómo se ha tramitado, ya que se ha gestionado al margen de los propietarios de los inmuebles. » Hay un problema de vivienda y se deben tomar medidas para favorecer el acceso a la vivienda de los colectivos más desfavorecidos, pero no se puede desviar la atención exclusivamente al sector privado, aunque cabe admitir que tiene una responsabilidad. » Hay propietarios que han actualizado sus inmuebles y ahora no pueden recuperar la inversión, ya que la renta que percibirán será la misma que la de un piso en que no se haya hecho ningún tipo de actuación. » Muchos propietarios se están planteando la opción de sacar sus productos del mercado y buscar la rentabilidad en la venta. » El perfil medio del propietario en Cataluña es un pequeño propietario que puede tener entre una y cinco viviendas. » El problema es la escasez de producto. El sector privado invertirá en la construcción de vivienda de alquiler asequible si también va acompañada de una política fiscal adecuada. » El mercado de alquiler empezó a tensionarse cuando se redujo la opción de la compra porque se cerró el crédito hipotecario. » El propietario quiere un inquilino estable, que cuide de su inmueble y que tenga un largo recorrido. El inquilino también quiere estabilidad. Hay que incorporar todas las partes a la mesa de debate. » Se necesita una política conjunta del sector privado, el sector público y todas las administraciones, tanto municipales como autonómicas. » Se deben flexibilizar las normativas administrativas. » Durante la pandemia, propietarios e inquilinos han llegado a muchos pactos. » A corto y medio plazo, la falta de rentabilidad del alquiler regulado acabará perjudicando a las personas a las que se quiere favorecer. » El índice, a partir de ahora, se alimentará exclusivamente de unos parámetros que, a la larga, quedarán congelados. Aportaciones a la comisión (En este bloque se incorporan todas las aportaciones relativas a los posibles efectos de la regulación. Estas aportaciones se han hecho a lo largo de las sesiones llevadas a cabo, y se agrupan todas en este punto.) » Es necesario hacer un ajuste entre la renta de los hogares y el precio del alquiler. » Los impactos de la regulación del precio del alquiler varían en función de las características del sistema de vivienda (características de demanda y oferta, y papel del sector público), de la situación macroeconómica, del mercado de la vivienda y de los plazos de los propios contratos. La mayoría de fracasos de los sistemas de regulación de rentas se han producido porque no estaban bien encajados en el marco de la política de vivienda general. www.barcelona.cat ANNEXE 151 ANNEXE 153 ANNEXE 155 Bibliography 1 RODRÍGUEZ A., R. (2010). “La 6 BETRÁN, R. 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Graphic design and layout Maria Beltran Editorial management Direcció d’Imatge i Serveis Editorials ISSN 2696-1733 Legal Deposit: B.23780-2019 habitatge.barcelona/ca 02 02 OCTOBER 2020 Diàlegs d’Habitatge The option of rent regulation in response to the affordable housing shortage An analysis of the rented housing situation in Barcelona in the context of Catalonia and Spain, and European and international examples of price-control policies Diàlegs d’Habitatge The option of rent regulation in response to the affordable housing shortage