BdE: rent control will have adverse effects and mortgage gua

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The general director of Economy and Statistics of the Bank of Spain, Ángel Gavilán , has warned that temporary measures, such as ICO credits for mortgages, are not "a miracle formula to resolve imbalances in access to housing", since This is a "structural" problem.



"It is a problem that has many edges. There is no solution that will solve it immediately," commented Gavilán. The general director of Economy and Statistics has explained, as stated in the 2022 Annual Report of the Bank of Spain, that the trend of home ownership in Spain has fallen greatly in recent years, especially among young people, and this has caused "an increase in inequality."



In that document, the Bank of Spain recalls that "there is Phone Lead evidence that a high percentage of home ownership tends to reduce wealth inequality", something that occurred in Spain in the past, since the ownership of real assets, especially , of the main home, was more widespread than in other European economies.



However, since 2014 a change in this trend has been observed, as a consequence of the "sharp reduction in the percentage of homeowner households", especially among young people.







Inequality grows due to less home ownership

In fact, between 2011 and 2021, the number of Spanish households whose habitual residence is not a home they own increased by 4.2 percentage points , which stood at 24.2% . Despite this increase, it is still below the 34.2% of the euro area, according to the Bank of Spain in its report.



This rebound in rental demand has also been reflected in prices, which, compared to labor income, have increased the proportion of the population at risk of social exclusion and of households with restricted spending capacity on other goods and services. .



Thus, as the Bank of Spain points out in its report, in 2021, 48.9% of Spanish households residing in rental housing were at risk of poverty or social exclusion , the highest percentage in the European Union (EU). ), while 40.9% dedicated more than 40% of their disposable income to housing, compared to 21.2% on the EU average.



"The increase in rental demand among lower-income groups is related to the situation of the labor market and the criteria for granting mortgage credit. Residence in rental housing is relatively higher among salaried workers without full-time contracts and among the unemployed," he adds.



Attention to the adverse effects of the Housing Law The Bank of Spain also cites in its report the upward trend in rental income after the pandemic. Although drops of between 3.5% and 4% were recorded between 2020 and 2021, they were reversed in 2022, with rebounds of between 7% and 7.5%.