Homeowners and housing developers have seen their opposition to the law to limit home purchases promoted by the Govern and the Comuns validated. The report published this Tuesday by the Consell de Garanties Estatutàries (CGE) coincides with much of the private sector’s objections: the regulation being processed by the Catalan Parliament violates the right to private property, freedom of enterprise, and other points of the constitution. It also points out that the acquisition of flats cannot be restricted through the Urban Planning law, as intended by the Catalan Executive and the party of former mayor Ada Colau.
”We welcome the decision of the Consell de Garanties because it is proven that the bill violates fundamental rights and goes against the Constitution and the Statute,” emphasize Som Habitatge. The homeowners’ association presented at the beginning of July a study prepared by Sergio Nasarre and Héctor Simón – professor and lecturer of Civil Law at the URV respectively – which warned of unconstitutional aspects and contrary to European legislation.
Criticism of processing it through the urgent procedure
This report was sent to Junts and the PP, parties that requested the CGE’s opinion, to support their requests. Now, the entity calls on the Govern to reconsider and withdraw the bill to open a dialogue with all the actors involved in the housing sector.
Developers have also demanded the suspension of the regulation. “It is untenable both in form and content,” said Xavier Vilajoana, president of the Barcelona Associació de Promotors i Constructors d’Edificis de Catalunya (APCE).
The initiative is being processed through the urgent procedure, without committees or hearings, to try to speed up its approval. But the CGE’s adverse opinion could delay it. ERC, whose votes are essential for it to pass, has already requested to reconsider the text.
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The bill modifies the Urban Planning law and allows municipalities to restrict the acquisition of flats according to their use, provided the municipality is in a tense market area.
Thus, homes could only be used either as the buyer’s permanent residence or for regular rental with capped prices in the municipalities that decide so. Other uses, such as seasonal rental, tourist rental, or businesses, would be excluded. It would also not be possible to buy to resell shortly after, a practice known in the real estate business as house flipping. It also sets a maximum of one second home per buyer in these areas.
However, both the PSC and ERC introduced independent amendments in the Parliament so that the regulation only affects large holders (five or more homes in tense residential market areas).
The Generalitat recently renewed these areas, with 22 municipalities leaving them from March next year and another 53 entering. The main restriction is on rentals. All cities included in the measure have rent caps, with regulated prices.
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