Isabel Rodríguez: "We're in a SOS situation for tourist rentals."

Isabel Rodríguez (Abenójar, 1981) took over the Ministry of Housing with the goal of implementing one of the most important laws of the last term and addressing what is currently the main concern of the public. The PSOE (Spanish Socialist Workers' Party) has just presented a fiscal package to try to advance solutions, although it needs the support of its investiture partners.

Two years into the Housing Law. What's the assessment?

Positive. It's the law that allows the government to implement a comprehensive housing policy. Before the law existed, we had difficulty fully exercising our powers. The initial rulings of the Constitutional Court confirm that the government must intervene in public housing policies to guarantee equal opportunities, and this represents a paradigm shift. In terms of supply, we are achieving unprecedented rates of public works tenders. In the last year alone, thanks to public-private collaboration, we were able to tender 50% more public housing, reaching €2 billion. Another innovation is the use of public land as residential land. Regarding rental supply, the law allows for lower rental prices. In Catalonia, we have managed to reduce them by up to 6%.

How are they going to try to avoid the PP's veto of the law?

I think there will come a time when reality will lead them to implement price restrictions. When the evidence becomes clear, they will have no choice but to accept that this regulation is effective, that it's producing results, and that they must implement it, because I believe social demand will also increase. Even conservative voters are in favor of intervening to declare areas under pressure. There is a clear demand in the Canary Islands and from various municipalities. I'm not asking them to help, but at least not to prevent it. To the autonomous communities that are refusing, for purely ideological reasons and to hinder this government, I ask them not to refuse to implement a regulation that is having a positive effect.

Are you concerned that price controls will discourage supply?

Supply is shifting toward other types of rentals. What's happening is very serious because it has nothing to do with regulation. In fact, these phenomena occur equally in areas where price regulation exists as in other cities, like Madrid, where it doesn't. What's the incentive for people who divert housing to tourist or seasonal accommodation? It's economic; it's profitability. And that's why the aid package we're implementing also targets these abuses fiscally, discouraging investment, as in the case of foreigners. What's unreasonable is that there are thousands of illegal tourist apartments and that city councils and autonomous regions look the other way.

Housing Law “There are conservative voters who support declaring areas of tension.”

And would you like to act?

What I do is act within the scope of my powers. A year ago, I brought together the regional and city councils to address the phenomenon of illegal tourist apartments, and they told me the problem wasn't that big, and that what was I doing talking about it when I'm the Minister of Housing? The Bank of Spain has just made it clear that tourist rentals are eating away at the residential market [50,000 tourist accommodations have been added in the last year]. I believe we're in a situation of SOS. The solution to tourist accommodation in Madrid can't be to move them from the center to the neighborhoods, or to prevent them from being installed in communities, but rather in horizontal properties, because investors will buy up entire blocks and expel the residents.

Reduction in supply "It has nothing to do with regulation, but rather with other types of rentals due to profitability."

Have you defined the tax on foreign buyers?

It's a new tax that will be linked to the Property Transfer Tax collected by regional governments. Where this tax exists, there will be a deduction. It will be a similar formula to the tax on large fortunes.

And what about the taxation of real estate SOCIMIs?

Their rate will be increased to 25%, but if they invest in affordable housing, they will be able to deduct it. The government's goal is to reward those who invest in affordable housing.

Tax on non-EU citizens "It will be related to the ITP and can be deducted; it will be similar to that for large fortunes."

Do you plan to fulfill the promise of providing 184,000 homes?

The plan is underway. The 184,000 homes are being built in different phases, and we're already handing over the keys. There's an emerging sector, consisting of third-sector organizations, entities or companies with limited profits, with which we'll work. I think the target is set: 8% for public housing, and it will depend on the pace at which we're able to build. The government is going to provide 300%.

Developers continue to call for a land law. Is it possible?

We must never lose hope, but it's important to emphasize the responsibility, which lies with the People's Party (PP). Can housing policy be implemented without this regulation? Yes. How? We're going to do it through another instrument, the public housing and land company, where we pool all the state-owned land (Defensa, Sareb, Adif, etc.) to make it available for the main purpose: affordable housing.

Land Law "We're going to make all state-owned land available for affordable housing."

Are there plans to provide aid to developers who build social housing?

Yes. We support them. We must strengthen our partnerships with social organizations or limited-profit companies that invest in social housing.

He said there wouldn't be a single euro of public funding from the State for housing that wasn't protected in perpetuity.

I stand by it. The law that the PSOE has registered this week guarantees the perpetuity of the public housing for what we are going to build on that land, regardless of where the land is located and the urban planning regulations of the autonomous communities.

Is it possible to improve housing funding without a general budget?

Yes. We have a magnificent budget in force, which includes up to 3.5 billion. And we have the political determination to increase investment. But the government aspires to have a new budget.