SPAIN‘S cabinet has agreed on a new law to control rents charged by landlords who own ten or more residential properties.
The measure will now have to be passed by Congress, which is not a certainty as the ruling PSOE-Unidos Podemos coalition does not have a majority.
The draft law features tax incentives of up to a 90% discount for landlords with less than nine properties who decide to cut rental charges.
The package would increase taxes on houses left empty by landlords in addition to a rent limit for multiple property owning landlords- something that is seen as a move against investment fund holders and large real estate groups.
Regional governments would have the ability to demand lower rates from large landlords in areas of high demand.
Presidency minister, Felix Bolanos, said: “This measure seeks to contain the price of rents and reduce them.”
“Vulnerable families and young adults in the cities would be the main beneficiaries of the proposed law,” Bolanos added.
There are plans for a €250 monthly grant for low-income people aged 18 to 35 to help them pay their rents.
The proposals will also mandate 30% of new-build housing developments to have properties reserved for social housing.
The €2.25 billion euro housing budget announced this Tuesday(October 5) includes €1 billion to boost the amount of Spain’s social housing, which is low compared to other EU countries.
Opposition parties like the Partido Popular and Vox have criticised the plans for interfering too much in the free market.