Europe is experiencing "a housing crisis that mainly affects low and middle-income households" as well as "young and future generations", who face significant challenges in becoming independent. In fact, "in certain Member States, up to 70% of young adults aged 18 to 24 have no choice but to continue living with their parents." This is stated in the report presented yesterday in the European Parliament's Housing Committee, led by the popular Borja Giménez. In addition to calling for cheap mortgages and tax exemptions for first-time homebuyers, the report also focuses on occupancy.
"Spain is the country with the most occupancy issues in the European Union," explains Giménez to this newspaper, who was appointed by the aforementioned Housing Committee as the document's responsible party. The MEP argues that there is a clear supply problem and that, in the case of Spain, this situation is exacerbated by "legal insecurity."
"Many property owners are afraid to put their homes on the market. They face legal processes of two to three years if their homes are occupied. In Brussels, they do not understand the leniency that exists in Spain regarding occupancy," he elaborates. And with the proposed registry, he continues, it will promote "cooperation, data collection, and information exchange among Member States," allowing for the "identification of occupancy patterns linked to crime" and "criminal organizations."
Returning to the document, which is preliminary and inconclusive, it specifically calls for "incentives such as reduced transaction rates for young buyers and first-time buyers." It also supports "granting low-interest loans to first-time buyers," meaning those cheap mortgage loans.
"It urges the introduction of guarantees covering up to 100% of the investment to facilitate young first-time buyers' access to credit, without compromising households' financial stability or exerting upward pressure on market prices," the document continues, warning that "the delay in emancipation prevents younger generations from starting an independent life and forces many citizens to postpone important decisions, such as starting a family."
"The situation is urgent. In eight years, housing prices have continued to rise. 48% in sales and 18% in rentals. Citizens are aware of it and suffer from it, which is why housing has become one of the main concerns, compelling us to take action," the text continues, pointing out several times the issue of "high demand" and insufficient supply.
Amendments, negotiation, and final proposal
All these warnings, proposals, and measures will now receive amendments from different political groups, and on October 20, the Housing Committee will present the final report they will work on. Subsequently, a three-month negotiation period will open from November to January, and by February, the specific proposals and measures that the European Parliament will have to vote on in March must be fully defined.
It is very likely that references to the complex situation of middle-class and working families and the difficulties young people face in becoming independent will remain, as well as possible measures to alleviate this situation. There may be more issues with the occupancy registry, although the PP will work to "fit it in" because they consider it essential. Once all that is in place, Giménez's goal, the Housing Committee's, and the Parliament's is for the European Commission to use this work as a guide for the short and medium-term measures it must take in the sector. However, this will require balancing the interests of member countries, the sensitivities and ideas of the commissioners, and, of course, what the President of the European Commission, Ursula von der Leyen, says.