Perhaps it is too early to know whether yesterday’s demonstration in central Madrid demanding housing improvements will lead to a “rent strike”, a tool of dubious legitimacy but increasingly popular in Spain. louder. There is no doubt that 13-O has managed to sneak the problems of the real estate market into the first line of public debate. There are already those who talk about the “new 15-M”, the “key revolution”, a strike similar to the strike held in Barcelona in 1931, and demand the resignation of the sector minister. Of course, the Government did not delay in taking steps on this issue.

And it did so using an ancient resource: bonds to pay rent.

The question is… Are these the solutions to the problem?

Housing is open to debate. It was said that the march would be crowded. And it didn’t disappoint. Tens of thousands of people took to the streets in Madrid yesterday with the slogan “Housing is a right, not a job” and managed to put the problems of the housing market, especially rents, in the focus of the media.

There is talk of a “keychain revolution,” the lever of a “new 15-M,” organizing a rent strike to demand a 50% reduction in rents, and even a demand for the resignation of Minister Isabel Rodríguez. He claimed today that he “understood” the complaints about what he described as a “social emergency”.

200 million aid. Sunday’s demonstration was strong enough that the Head of Government had to speak today. He did this during Prisa’s ‘Developing World’ forum. There he announced that “200 million euros will be distributed to young people as rental bonuses.”

The institutional mechanism for the distribution of funds to be passed by the Council of Ministers this week will be put into effect immediately. Minister Rodríguez also spoke about the measure and called for “speed” from the autonomous communities responsible for the implementation of aid to TVE.

Speaking at the forum, Pedro Sánchez said, “We will continue to fight to make housing the right of everyone rather than the job of a few people,” and he stated that housing is facing a “difficult” situation in our country and that the prices are very high. “has not stopped rising” and is in “scarce” supply. To alleviate this situation, he launched another announcement: a new regulation designed precisely “to prevent fraud in tourist and seasonal accommodation contracts.”

Are these new measures? No. Neither one nor the other. We spoke to you about the Government’s promise to restore order to the seasonal rental market, which has become a lucrative shortcut to bypass certain regulatory requirements.

The 200 million euro aid provided to prevent rents from placing such a burden on young people’s pockets is not new. The government had already announced this a few weeks ago, after the Sectoral Conference on Housing and Urban Agenda, where it was unanimously agreed to distribute this amount as a Youth Rental Bonus. Because it is not, it will not even be the first call to the aid program.

What is the Young Rental Bonus? An injection of 200 million euros has been designed to prevent rents from overwhelming young people so much. After all, there are studies that warn that young renters are spending 70 percent, or even more than 90 percent, of their salaries trying to keep up with landlords.

“The aid is set at 250 euros per month for each young person for a period of two years, with the aim of facilitating their emancipation or, in any case, the enjoyment of a house or room on a rental or transfer basis.” Moncloa lately. Details are available from Housing or BOE.

With what quantities? In general terms, it provides for the distribution of funds by the autonomous community, which is responsible for managing the claims of the tenants concerned. The direct helpline is designed for young people between the ages of 18-35 whose income does not exceed a certain limit and whose monthly income is within a certain range.

A price of up to 600 Euros per month is mentioned for complete apartments. Up to 300 Euros per room. Both figures can be increased to 900 or 450 euros respectively if the Program Monitoring Committee deems it appropriate. The aid has a two-year limit and is distributed in monthly installments of 250 euros, eventually reaching 6 thousand euros.

You are helping… But for whom? The government touts rental vouchers as a way to “access housing,” but the effectiveness of such assistance has long been clouded by doubts. We already told you about this with Mariano Rajoy in Moncloa in 2018, after the launch of the 2018-2021 Housing Plan. At that time, aid was on the table for up to 50% of household income, up to 600 euros per month. Or 900, if it were Madrid or Barcelona.

The measure raised two doubts that can be partially transferred to the current scenario. The first is the amount. Especially if we take into account that the average rent in Spain currently stands at 1,874 euros per month, according to data from Enalquiler. Yes, it is an average that hides important differences between regions, but the data is important. The second big question was: What effects do they really have? Do they solve the problem or help the homeowner?

“Another problem for homeowners”. The quotes come from Sumar’s spokesman, Íñigo Errejón, who was quick to register his doubts in X following Pedro Sánchez’s statement this morning. “It’s not like that. That means giving huge amounts of public money to homeowners who will keep public assistance and raise prices again,” he shouts. In his opinion, the main thing is to “limit prices.”

Similar criticism was expressed by Podemos general secretary Ione Belarra in his account of whether rent caps were implemented.

Experts’ warning. Not all of the criticism comes from the political opposition, nor is it new. Some scholars have commented on the effects of similar policies in France or England, concluding that homeowners received a significant share of the aid.

A 2010 analysis of housing and rental subsidies by Aki Kangasharju concluded that “Results show that an additional euro subsidy in the private sector increases applicants’ rent by 60-70 cents.”

“What appears to be a seemingly good measure is still a temporary measure that has no real effect and harms prices,” José Ramón Zurdo of the Rental Negotiation Agency said after the approval of the Rental Bonus in 2022. he warned. The important thing, according to El Español, is that the requirements limit the number of beneficiaries and that the program may affect landlords: “This may cause many people to increase their rental prices upon becoming aware of this assistance.”

“The road to continue”. In his speech this morning, Sánchez also insisted on the usefulness of the Housing Code, which, although limited in scope, is one of the Government’s star measures on the housing market. Accompanied by Salvador Illa, president of the Catalan Generalitat, he also reminded that the community wants to promote approximately 50,000 sheltered homes. “This is the path that all governments must walk together. I hope that all regional and local governments will understand this once again.”

Pictures | Danist Soh (Unsplash), Pool Moncloa/Borja Puig de la Bellacasa, Fernando Jiménez Briz (Flickr)

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