Asking landlords to support

According to Isabel Rodríguez, Spain is a nation of solidarity. Please value returns socially.”

Without effective policies, pleas. Due to rising rents and the threat of a tenant strike, the government has decided to directly ask landlords to lower their prices. This was achieved through “solidarity” and the sector minister, Isabel Rodríguez García, who defended adjusting rents to tenants’ affordability on SER radio station yesterday.

This is the Executive’s latest attempt to address housing, one of Spaniards’ biggest problems after its “price cap” system failed in only a few regions.

The key question is… Is the petition effective?

A note to landlords. Yesterday, Minister for Housing Isabel Rodríguez highlighted the significant impact of rising housing prices in Spain, as reflected in CIS opinion polls. In an interview on SER’s ‘La Ventana’, the socialist leader urged landlords to reconsider rents.

The message was clear. It had two main themes. First, “solidarity.” Second, focussing on small property owners, who make up most of Spain’s rental housing supply but are less well-known than vulture funds or large investors.

He said exactly what? Given the limitations of the government’s price cap system, which depends on autonomous communities, asking landlords directly can lower rents. “I believe Spain is a supportive country, with most rental housing owned by small owners,” Rodríguez stated in the interview.

“What I ask of them is that they also take charge of this cause, of this social need, and that we value the returns in social terms, that we value that these prices are in accordance with the capabilities of the Spanish people,” said the Housing Minister, “and of course I think that we must protect them, we must take care of them because they have the majority of the rental housing stock.”

Message included. She left other rent-related messages. Minister Rodríguez expressed displeasure that Madrid does not apply the Housing Law’s price index, which she believes “harms” residents. “They could have advantages in rent, even owners receive tax bonuses of up to 90%,” the leader criticised, accusing Madrid president Isabel Díaz Ayuso of “ideological dogmatism.”

The regional government and Madrid City Council, both PP-controlled, called the Government’s price index “ineffective and interventionist“. PP-ruled territories—the majority on the political map—have opposed the price index as “real estate suicide” that promotes the underground economy.

Words matter. The context is crucial in explaining Rodríguez’s statements. The context is marked by a mix of factors, including the government’s recent residential rental market tension-reduction measures’ poor effectiveness. For some time, Idealista’s tables show rental costs rising. Its latest data from last month showed 13.1 euros per square metre. It was barely 7.2 €/m2 a decade ago in the same month in 2014.

The imbalance between supply and demand means that some provinces have more than 100 applicants for each flat and landlords are becoming more picky. The Tenants’ Union of Madrid has called for a demonstration in October due to the brutal price hikes, and there is already talk of a rent strike.

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