The Governor of the Bank of Spain proposes reforms with a ‘broad’ time horizon, in coordination between the different administrations and aimed at stimulating housing supply, especially in the rental market.
The Governor of Bank of SpainPablo Hernández de Cos has warned that the regulation of rents could have negative effects on the housing market “in the form of lower supply in the medium term.”
During his appearance in Congress to explain the entity’s annual reports in 2022 and 2023, Hernández de Cos dedicated part of his speech to splitting the chapter of the text dedicated to analyzing the rental market.
A market, the governor said, that shows something of that mismatches between supply and demand “particularly pronounced” in the residential rental segment in the centers of large urban areas, which mainly affects lower-income groups such as young people or the immigrant population. The imbalances arise, De Cos explains, as a result of insufficient supply in the face of high demand, which together cause ‘high’ rents.
The Bank of Spain points out that housing is facing a problem short-term proposals are not enoughsuch as the regulation and limitation of rental prices.
It has also shifted the risk focus to providing fiscal stimulus or supporting demand. According to him, this will cause prices to rise and “it will be the homeowners who will ultimately benefit from these tax deductions.”
In that sense, the governor considers it desirable for housing to be built reforms with a ‘broad’ time horizonin coordination between the various administrations and aimed at stimulating the housing supply, especially on the rental market.
Source: EITB
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