La propuesta de la extrema izquierda para abaratar la vivienda se estrella en Holanda

Summary

The far-left in Spain, including parties like Podemos and Sumar, proposes banning investment funds from purchasing residential properties, aiming to reduce speculation and make housing more affordable. However, evidence from the Netherlands, where a similar policy has been implemented, suggests this approach is ineffective. While it reduced investor purchases, it did not lower property prices and instead raised rental costs, leading to gentrification and displacing lower-income residents. The policy also failed to address the root causes of the housing crisis, highlighting that simply restricting investment funds will not solve Spain's housing issues.

Takeaways

• 😀 The Spanish far-left advocates for banning the purchase of housing by investment funds in order to lower real estate prices, although the effectiveness of this measure is questionable.
• 😀 Spain faces a serious housing crisis due to high demand in major cities and insufficient supply, suggesting that increasing housing construction should be the solution, rather than restrictive policies.
• 😀 The far-left political groups in Spain, such as Podemos and Sumar, believe that the solution to the housing crisis lies in preventing investment funds from buying property for rental purposes.
• 😀 Yolanda Díaz, the leader of Sumar, proposed a temporary ban on the purchase of homes in high-demand areas by investment funds, with the aim of lowering housing prices in those areas.
• 😀 The far-left claims that the Netherlands has successfully implemented similar measures, but the reality is different. The Dutch policy is not as restrictive or universal as what is proposed in Spain.
• 😀 In the Netherlands, a regulation was introduced in 2022 requiring municipalities to grant licenses for renting properties bought by investors, but it is limited to properties below certain price thresholds (250,000–350,000 euros).
• 😀 The Dutch policy is temporary and applies only for four years after purchase, after which properties can be rented out freely, contradicting the Spanish far-left’s call for a permanent ban.
• 😀 A study on the Dutch housing market found that while the policy reduced investor purchases, it did not lead to a reduction in property prices. The overall housing demand remained unaffected, so prices didn’t decrease.
• 😀 While the policy did lead to a decrease in the number of homes purchased by investment funds, the demand for homes from private citizens increased, which kept prices stable.
• 😀 The Dutch policy inadvertently led to higher rental prices as fewer homes were available for rent. Additionally, it caused gentrification, pushing out lower-income, younger renters in favor of higher-income residents.
• 😀 The study concluded that prohibiting investment funds from purchasing properties for rental purposes does not address the root causes of the housing crisis and could worsen the situation, particularly for younger people with lower incomes.

Q & A

What is the main proposal put forward by extreme left-wing parties in Spain regarding housing?

The main proposal is to prohibit investment funds from purchasing properties for the purpose of renting them out. The idea is that only individuals who plan to live in the properties should be allowed to buy them, while investment funds would be banned from buying properties for speculative purposes.

Why do the proponents of this policy believe it would help solve the housing crisis?

The proponents argue that limiting investment funds' ability to buy properties for rental purposes would reduce speculative demand and thus lower property prices, making housing more affordable for those who intend to live in the homes they buy.

What does Yolanda Díaz propose regarding the purchase of housing in 'tensioned' zones?

Yolanda Díaz, leader of Sumar, proposes a temporary ban on the purchase of homes in 'tensioned' areas if the properties are intended for speculation. This would only allow purchases by people who intend to live in the properties, with the goal of lowering housing prices.

How does the situation in the Netherlands differ from the proposed Spanish policy?

In the Netherlands, a policy was implemented in 2022 that requires municipalities to grant licenses for buying properties to rent out, but this is only for properties below a certain price threshold. Unlike Spain's proposal, the Dutch measure is temporary, applies only to lower-priced properties, and allows for exceptions after four years.

What was the result of the Dutch policy restricting the purchase of properties for rental purposes?

The Dutch policy did not lead to a reduction in property prices. Although the number of properties purchased for rental purposes decreased, property prices did not fall. Additionally, rental prices increased due to a reduction in available rental properties.

Did the restriction on property purchases in the Netherlands affect the composition of neighborhoods?

Yes, the policy caused a shift in the composition of neighborhoods. Young renters with lower incomes were displaced, and higher-income individuals, who could afford to buy homes instead of renting, moved into these neighborhoods, contributing to gentrification.

Why is the argument that restricting investment funds will lower property prices questioned?

The argument is questioned because, despite reducing the number of properties purchased by investment funds, the demand for housing did not decrease. The overall demand remained high, leading to no significant reduction in property prices, and instead, rental prices increased.

What negative impact did the restriction have on rental prices in the Netherlands?

The restriction led to a rise in rental prices. With fewer properties available for rent, the demand for those that remained increased, driving up rental costs in the areas affected by the policy.

What does the analysis suggest about the effect of this policy on young people and lower-income groups?

The analysis suggests that the policy did not benefit young people and lower-income groups as intended. Instead, these groups were displaced by rising rents and property prices, while higher-income individuals were able to buy properties that would have previously been rented out by investment funds.

What is the overall conclusion drawn from the analysis of the Dutch policy regarding the Spanish proposal?

The conclusion is that prohibiting investment funds from purchasing properties for rental purposes will not solve the housing crisis in Spain. Instead, it could exacerbate the situation by increasing rental prices and contributing to the displacement of lower-income renters, especially young people. The real solution lies in increasing the housing supply rather than restricting the market.