The law to restrict home purchases in Catalonia continues its processing in the Parliament with a relevant novelty: the PSC and ERC propose to limit its application only to large holders (five homes or more) and companies (legal entities). This is reflected in the amendments that socialists and republicans have introduced on their own and to which La Vanguardia has had access.
The text lowers the intensity of the initiative promoted by the Comuns and which the Salvador Illa Government accepted as a counterpart to approve the Generalitat’s budgets. Now it is the socialists themselves who try to refine some of the measures. In the text of the party of the former mayor Ada Colau, the limitation is broader, as it would affect all types of owners, both large and small as well as companies and individuals, although it is mainly intended for the first group.
Essentially, the law allows municipalities to restrict the acquisition of housing in their territory as long as it is located in a stressed market area. In this way, properties could only be purchased to be used as a main residence or for regular rental. Other uses would be excluded, such as seasonal rental, tourist rental, or the installation of businesses (offices, consultancies…).
The amendments presented by ERC, whose votes are essential for the initiative to move forward, go in the same direction as those of the socialists and also exclude small owners from the restrictions as long as they are individuals.
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Although the PSC presented these amendments on its own, it also registered others agreed with the ecosocialists. The final debate on the law was to take place this Thursday in the Parliament but, once the amendment deadline ended, the groups can now request an opinion from the Consell de Garanties Estatutàries to determine if it complies with the Statute and the Constitution. Junts will likely request it today or tomorrow, which will mean the law will not be approved until after the summer.
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The bill under discussion would also not allow buying to resell shortly after, a practice known in the real estate business as house flipping. This strategy consists of acquiring a property at a low price – usually deteriorated –, renovating it to increase its value, and reselling it quickly to make a profit. Another figure it regulates is that of second homes. The text sets a limit: only one can be owned per person if purchased in a stressed area. And it could never be used for vacation rental, as some owners do.
This is an unprecedented initiative in Spain and is inspired by the law approved by the Netherlands in 2022. Municipalities in that country can prohibit the purchase of properties to put them up for rent, but only in the case of medium and low-priced homes. Each council sets neighborhoods and an appraisal value from which the measure applies. Amsterdam, Rotterdam, or The Hague are some of the cities that have regulated home purchases due to the supply problems they face.
This measure now being discussed in Catalonia has caused a great stir in the sector and the business world, which labels it as “unconstitutional.” For their part, groups defending the right to housing regret that the law falls short and call for even stronger measures.
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