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Spain’s New Housing Law: How it Affects Buyers and Sellers

Spains New Housing Law How it Affects Buyers and Sellers - Spain's New Housing Law: How it Affects Buyers and Sellers

The Council of Ministers recently approved the new housing law for 2022, and it introduces notable changes that will have a significant impact on the real estate market. Although the new law focuses on the rental market mostly, intending to facilitate access to housing, the truth is that it also includes measures that will affect both buyers and sellers.

How will the new housing law affect sellers?

There are several aspects to consider in this regard. On the one hand, measures to increase property rentals with affordable prices may have a collateral effect on the resales market. This effect would be that owners who now have empty or rented homes could consider selling, as they do not obtain the desired profitability.

Another repercussion is related to protected housing. With the new housing law for 2022, it won't get allowed to remove a home from the subsidized housing classification (VPOs) for a minimum of 30 years, while real estate built on land intended for VPOs may not lose the protection rating.

Until now, that period to remove a property from the subsidized housing classification was 15 years. Once a property gets out from that classification, it can get sold at a market price. The new regulation intends to prevent any speculation with protected housing.

Buyers are also affected by the new law

In the case of buyers, the new housing law for 2022 may mean more opportunities due to the expected increase in the housing stock for sale. More properties on the market would suppose more opportunities to find the right home for you and your budget.

Concerning new construction, the new law plans 30% of new builds for the subsidized housing classification (VPO). For buyers with limited resources, this measure expands the possibilities of acquisition.

However, this question generates uncertainty among the promoters, afraid their profits may get reduced. To avoid what could mean a halt in housing construction and a potential increase in prices, they propose allowing a higher percentage to build or granting more land.

More effects in the rental market

Although the housing law for 2022 will influence the buying and selling market, the rental market will apply most of the changes. Some of the measures will be penalties for large owners with empty homes, price controls in stressed areas or tax incentives for small owners to rent at affordable prices.

Although approved in the Council of Ministers, the entire parliamentary process of the new law remains ahead, which in the best of cases would not come into force before autumn.

If you are looking for your ideal home, whether it is a first home or a second residence, or if you want to invest in the real estate market, Spainhouses.net helps you achieve it. Just go to the web and use our browser to see a list of properties that fit what you need. Start making your wishes come true.

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