The European Union is exploring potential interventions in the housing market that could significantly impact the second-home sector in Spain. While no immediate changes are in place, foreign property owners contemplating selling may want to expedite their decisions.
Traditionally, housing has been managed at national, regional, and local levels within the EU. However, escalating prices and shortages have elevated the issue to a European concern, prompting Brussels to propose an Affordable Housing Act. This initiative aims to create a ‘common framework’ for local authorities to address ‘stressed housing areas’ with ‘targeted, necessary, and proportionate’ measures, particularly concerning the ‘non-primary use’ of housing.
These measures could include restrictions or fiscal policies affecting vacant properties, tourist accommodations, and second homes. In high-demand regions like the Balearic and Canary Islands, the proposals might even pave the way for limiting second-home purchases.
It is crucial to note that this is not yet EU legislation enforcing such restrictions, nor is there a proposal for EU-wide rent controls. Decisions would remain with the relevant national or local authorities, and any measures should be evidence-based, proportionate, and non-discriminatory.
Currently, there are no changes for property owners or buyers. However, the EU’s movement towards facilitating local housing market interventions could make it more challenging for British nationals to purchase homes abroad.
Dirk Gotink, a Dutch MEP from the New Social Contract party, highlighted that the legislation could have ‘serious consequences’ for British buyers, particularly in tourist hotspots like Spain, Croatia, Italy, and France. He criticized the proposal for not addressing Europe’s housing crisis effectively.
In Spain, reactions are mixed. Barcelona’s mayor, Jaume Collboni, views the proposals as a ‘historic milestone’ supporting his interventionist housing policies. Conversely, the opposition Partido Popular emphasizes the need for proportionality and evidence-based measures, warning against permanent blanket bans.
Foreign property owners are notably vulnerable in this debate, as many possess the types of properties under scrutiny: second homes, holiday residences, and rental investments in high-demand areas.
For now, there is no immediate cause for concern. The proposals are still in the early stages, and any future measures will depend on the eventual European legislation and subsequent decisions by Spanish authorities at various levels.
