Spain to Pass Host of Rent-Lowering Measures

Spain's coalition government has agreed on a draft law to control rents through a mix of coercive measures and tax incentives. The new bill would include tax incentives for small landlords who cut the rents they charge and would boost property taxes on houses left empty by their landlords, the minister told reporters after the weekly cabinet meeting. The draft law will require 30% of new-build housing projects to be set aside for social housing, he said. The bill on housing is part of a wider agreement between the Socialist Party and the far left Unidas Podemos, the ruling coalition partners, who had been bickering for weeks over next year's budget bill. The 2.25 billion euro ($2.61 billion) housing budget announced by prime minister Pedro Sanchez on Tuesday includes 1 billion euros to expand Spain's social housing stock which, at around 2% of national stock, is much lower than in other European countries. The housing legislation would also allow regions to order landlords with more than 10 properties to lower rents in areas with high demand, a source at Unidas Podemos said on Tuesday. The government also plans to grant a 250-euro monthly bonus for low-income people age 18 to 35 to help them pay their rents and leave their parents' home, a critical issue in Spain.