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Friday, March 1, 2024

Add to the charge against the PSOE for “prioritizing” the implementation of guarantees to buy housing and warns that prices will rise

The tension between PSOE and Add continues to increase. In recent weeks, the relationship between the partners of the Government coalition has cooled because the formation led Yolanda Diaz He considers that the socialists have made several insults to them. And, this Tuesday, a new front was opened in the already turbulent panorama with the decision of the Council of Ministers to approve a line of guarantees from the ICO to make it easier for young people under 35 years of age to access the purchase of a home, a decision that Sumar did not like at all, which has come to ensure that it will end up causing exactly what it is trying to avoid: that prices continue to rise.

The truth is that the formation led by Díaz accepted that this measure was implemented a few months ago, when he signed the coalition pact with the PSOE. This document establishes that the Government would develop and apply “the new line of ICO guarantees of 2,500 million euros to help young people under 35 years of age”, a tool through which the State would support “20% of the mortgage for the purchase of the first habitual residence for young people”. Literally what was approved this Tuesday in the Council of Ministers.

For this reason, Díaz was very careful when choosing her words and criticized the fact that the Government has implemented this measure at the initiative of the PSOE, but that that has been the “priority” of the socialists. “The priority is the millions of people in Spain who cannot pay the rent,” denounced the vice president and leader of Sumar, who also recalled that the coalition agreement included another measure on housing that has not yet been fulfilled and that was for “immediately publishing the rental price indices in stressed areas”, the basic tool so that communities that wish to do so can apply the price limitation allowed by the housing law approved the last legislature.

MADRID, 02/13/2024.- The Minister of Housing, Isabel Rodríguez during the press conference after the Council of Ministers held at the Moncloa Palace this Tuesday.  EFE/ Rodrigo Jiménez SPAIN GOVERNMENT

Díaz, in addition, was very critical of a measure that she even described as a “failed policy.” “It is evident that we have a concern, because the promotion of home purchases through public income guarantees “It will have the consequence that housing prices will continue to rise.”, snapped the vice president, who insisted that “the main problem of our country” is that “it is impossible to live on rent in multiple cities” and that “50% of the people who live on rent in Spain are at risk of entering into social exclusion and poverty”. “In a country with a median salary of 1,545 euros per month it is impossible to pay rent,” she concluded.

Even more specific was Sumar’s parliamentary spokesperson, Íñigo Errejónwho assured that the “risk” of this measure is that “it may end up increasing the price of housing and, above all, transferring public funds to developers and banks in a context of already very high interest rates”, as has already happened in other countries. “The real estate market in Spain is a deeply oligopolistic market and marked by abuse, and to put an end to these abuses a brave policy is needed, which involves limiting rental prices, putting a limit on tourist and temporary rentals and reaching up to 20% of public housing under a social rental regime, which also helps to lower the price of competition.

“We are clear about this: we must intervene in the market, and this time, after many decades of intervening in favor of rentiers, we must do so in favor of families,” denounced Errejón. And along the same lines, the first secretary of the Congress Board, Gerardo Pisarello, also a deputy from Sumar, expressed himself, criticizing that the guarantees that have been approved this Tuesday are “unconditional” and assured that, “if it is done as it is has raised, “That’s money given to the banks.”

Consumer groups criticize the measure

On the other hand, several consumer and user groups have also been very critical of the measure approved this Tuesday. “This measure goes against the general interest of consumers, since it could cause an increase in the purchase price mainly for the benefit of the banks and those who speculate with housing prices” Facua denounced in this regard through a statement. The Association of Financial Users (Asufin) spoke along the same lines, denouncing that these loans can “become a hidden subsidy for the developer.”

“We declare, once again, the need to promote a public housing stock for youth and vulnerable groups solid and of adequate dimensions, as a priority measure compared to the ICO loans proposed today by the Government. In certain populations, housing prices are extremely stressed and this disproportionate cost will not be assumed by the developer of new housing, but by the young buyer,” said Asufin, who urged the Government that, if it continues with the measure, least prohibit banks from raising “interest rates with the contracting of other products, such as insurance.”

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