Government to Prevent Funds From Buying Flats Below 30 per Cent of Their Value
31 Articles
31 Articles
They criticize that the government puts on its back the responsibility of responding to a housing crisis for which now, driven by social pressure, improvise measures Read
The rule limits certain purchases below 70 per cent of the value of valuation, but allows transactions that reach that threshold and includes exceptions for foreclosures and entities that adhere to a code of good practice
The drafting of the housing decree, published in the Official State Gazette (BOE) earlier this morning, has opened a controversy about whether the prohibition of buying flats actually affects big funds or not. The issue is not minor, since the government yesterday highlighted its “ambition is not to put sticks on the wheels to companies, but to orient them towards non-speculative practices.”
Inmobiliarias and construction companies lack measures to release land and regret the excessive intervention of the market.
The veto on discounted purchases does not prevent a fund from being able to award a home in a foreclosure even if the award price is below 70% of the valuation. Thus, the automatic extension of the rents will be: the owner will have to compensate the tenant with one year of rent if it fails to comply with the “Prohibition of speculative purchase of housing”, with discounts of more than 30%; suspension of evictions of vulnerable persons until Dec…
The rule will be in effect until the end of 2028. More information: The government faces rents at 2% on the day inflation rubs 5% and allows the tenant to stay for up to ten years.
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