New housing decree extends limits on certain speculative purchases until 2030

The new housing decree-law expands and tightens limits on certain speculative purchases, after Congress rejected an earlier version. Published in the BOE, it enters into force the day after its publication, according to the coverage consulted. However, its continuation is not assured: it must be ratified by the Permanent Deputation of Congress, which exercises parliamentary functions while the Cortes are dissolved.

The vote in that body has a different arithmetic from the plenary session that rejected the previous text. El Triangle reports that the Government could obtain the necessary support without Junts’ votes. This describes a political possibility, not a ratification that has already been approved.

Which transactions are subject to the limit

The new version maintains the restriction on purchasing homes for consideration below 70% of their appraised value and extends it until December 31, 2030. The measure, which had been proposed for a shorter period in the previous text, also applies to certain legal entities considered large property owners under state housing legislation, as well as entities in their group or acting on their behalf. La Vanguardia puts the relevant threshold for the companies covered by the regulation at more than ten properties.

The decree also includes auctions among the transactions covered. It therefore does not establish a general ban on buying homes below that percentage: it limits purchases falling within the cases defined by the regulation. The phrase “vulture funds,” which appeared in the previous version, has also been removed from the text, according to El Triangle and La Vanguardia.

Changes to compensation for evictions

The new wording also modifies compensation linked to certain suspensions of evictions. Civio explains that legal costs have been added to the expenses that may be compensated in the cases provided for. La Vanguardia adds that, in the extraordinary cure described in its coverage, the State would continue to fund the compensation, but payment would be the responsibility of the autonomous community. If payment is delayed, interest would accrue; the deadline for payment may affect how long the suspension lasts.

These rules do not mean that every suspension gives rise to compensation: their application depends on the cases covered by the decree. The available coverage does not set out all the conditions required for each case here.

Other new measures in the regulation

Civio identifies other measures included in this version: an additional 400 million euros for the Social Impact Housing Fund and new transparency requirements for rental listings. Among other details, these must state whether the landlord is a large property owner and which rent limits apply; according to the coverage, publication of the state index’s reference price is required in stressed areas.

The date of entry into force and ratification are separate milestones. The former allows the decree to begin applying from the specified date; the latter will determine whether it remains in force. Until the Permanent Deputation votes, the continuation of these measures should not be taken for granted.