The Government of the Generalitat assured yesterday that it will seek “legal measures” to protect the right to housing in Catalonia and opened the door to substantial modifications in the law against speculative buying after the setback from the Consell de Garanties Estatutàries, which deeply questioned the regulation and emphasized that it violates the Constitution. The Comuns’ bill, agreed with the PSC Government, aims to restrict speculative buying and selling of homes in stressed areas as long as it is not for residential use.
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The Catalan advisory body, in an extensive report of more than 100 pages, points out that the law violates five articles of the Constitution, such as the right to property and inheritance, freedom of enterprise, contractual obligations, and legal certainty. All points of the Consell’s report, which is not binding, were approved unanimously.
The Consell de Garanties also warns that it intends to legislate civil law matters through a modification of the Catalan Urban Planning law, warns that it invades state competencies in contract matters, and questions that the regulation was approved using the single reading procedure, which skips several steps such as hearing local entities, which would be responsible for applying the law if it were passed.
Although the opinion is not binding, the Minister of Territory, Sílvia Paneque, stated that they will make modifications to find “the possible ways in accordance with the Statute to protect the right to housing in Catalonia.” Paneque warned that “the commodification of housing is a danger when having a home becomes a problem for most of the people of Catalonia,” and maintained that “it is necessary to find ways that according to the law provide solutions to a structural issue like this.”
Both Junts and PP, who requested the report from the Consell, welcomed the resolution. The post-convergence party emphasized that “it is clear that the regulation violates the right to property, inheritance, freedom of enterprise, and legal certainty.” Additionally, in a statement, they highlighted that the law “presents serious competence, procedural, and local exclusion problems.” The Popular Party, in turn, reiterated that they will appeal the regulation to the Constitutional Court if it is approved and described the text as a “botched job that was born violating fundamental rights, invading competencies, and attacking basic principles of the rule of law.” Both groups are calling for the proposal to be withdrawn.
Junts and PP, who requested the opinion, demand the law be withdrawn due to its “serious problems”
Comuns, for their part, claim they do not share the analysis of the Consell de Garanties Estatutàries. They consider that the body “has not understood that it does not limit acquisition but the purpose of the housing.” Its president in the Parliament, Jéssica Albiach, stated that they will continue “exploring the legal margins to make housing in Catalonia a right and not a financial asset.”
The other essential group for the regulation to pass is Esquerra, and the Consell’s opinion has added more doubts within the party. Sources from the party indicate that “it will have to be reconsidered” because “the regulation has too many objections.” For them, the Urban Planning law is not the best way to regulate speculative housing purchases, a goal with which they agree.
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Republican sources consider that there are other possibilities to fit this restriction such as civil law, acting through taxation, or in specific housing legislation instead of modifying the Urban Planning law. In ERC they point out that “they do not understand” why taxation treats all buyers equally.
The opinion opens a new amendment period in case the groups want to introduce modifications, so the approval of the regulation, initially scheduled for early October, will almost certainly be delayed.
The keys to the controversial initiative
Before closing the political term, the Parliament processed the Comuns’ bill by single reading to restrict housing purchases in Catalonia in some cases.
What would it prohibit?
The ecosocialists’ text aims to reduce investor participation in the real estate market and promote the acquisition of flats by individuals. Thus, homes could only be used for permanent residence or regular rental. Seasonal rentals, tourist rentals, or businesses would be excluded. Nor could one buy to resell shortly afterward.
Who would it affect?
Regarding the buyer profile, it would affect both large holders and those who are not, as well as individuals and legal entities in stressed market areas. Although not explicitly stated, inherited flats would also fall within these limitations. Anyone who acquires a home would have to reside in it or rent it regularly within twelve months.
Exceptions
The purchase of housing for children or persons with a kinship relationship up to the second degree is included. As for second homes, only one per person could be owned if purchased in a stressed area.
The Palau de la Generalitat does not specify at the moment which path Salvador Illa’s Executive will choose, but it is clear that at least there will be a modification of the current wording or work will be done to draft a new law following the adverse report from the Catalan advisory body, which is not binding. In fact, the groups could ignore the recommendations of the Consell de Garanties, but it is clear from the minister’s words that this will not be the path chosen by the Catalan socialists.
The PSC supported the ecosocialists’ regulation because the Government agreed to it in exchange for that group’s support for the Generalitat’s budgets, although among the Catalan socialists there were those who dragged their feet and did not look favorably on Albiach’s group’s proposal. An initiative that, after the report, enters quicksand.
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