Only 15.8% of the young population is emancipated, the worst figure in decades. Youth unemployment and housing prices are the two main reasons for this. Now, the government is trying to find a solution through a new housing law. But will it be enough? We talk to the experts.

In Spain, almost half of young people aged between 16 and 29 who live in independent housing do so in shared rented accommodation. If they want to live on their own, the price to be paid represents 91.6% of their salary and, if they want to take out a mortgage, they need to set aside at least 55.1% of their salary. Although buying a home may seem more affordable on the surface, the reality is that the mortgage market is closed to young people. They neither have sufficient savings to cover the initial outlay, nor do they have job stability. This is what the Spanish Youth Council states in its annual study for 2020.

Housing continues to be the big headache for young people who want to become independent. That is why, in an attempt to tackle this scenario, the government of Pedro Sánchez has announced a new Housing Law, which should limit rental prices and favour young people’s access to decent housing. In 11Onze we have analysed the proposed regulation with the Tenants’ Union and the president of the Consell Nacional de Joventut de Catalunya (CNJC), Guillermo Chirino. 

When the law falls short

In an emergency situation like the current one, in which the rate of youth emancipation has reached historic lows, Chirino considers that ‘political action cannot wait’. However, he warns that, if the law takes 12 or 18 months to be passed, as is usual, this gives landlords room to raise rental prices and, therefore, the effectiveness of the measure falls short. The president of the CNJC also warns that the government has already pointed out that the law’s aid would be limited to those young people who work. ‘This alone rules out more than 50% of young people,’ laments Chirino. Moreover, the politicians declared that the aid would reach some 50,000 young people, that is, only 1% of young people in the State.

‘Obviously, this law will not solve anything or facilitate the emancipation of young people’, criticise sources from the Union of Villages, who add that they are not in favour of financing the payment of housing for young people with aid. ‘It allows the landlord to think that, if young people can pay more, then it is not necessary to lower the price, but they can even raise it’, they argue.

The inspiration of the Catalan model

As far as rent regulation is concerned, the proposal is inspired by the Catalan law, the only legislative proposal in force in Spain. This is explained by the Tenants’ Union, who, together with the Tenants’ Union, have worked intensively on the Catalan law and have fought to bring it to the national level. However, the Tenants’ Union warns that the differences between the Spanish government’s proposal and the Catalan one are substantial and put at risk the effectiveness of the measure in the whole of Spain.

To begin with, the Catalan law establishes a rental price index, which assures tenants that, if they sign or renew a contract, the price remains the same as in the previous contract. Moreover, if the price is above this reference index, it must be lowered. The index is calculated on the basis of the average of rental prices for dwellings with similar characteristics and within a specific area. In contrast, in the Spanish government’s proposal, only legal landlords, i.e. companies with more than ten properties, would be obliged to reduce the rental price.

‘In cities like Barcelona, the concentration of ownership is very high, but only 30% of rental housing is legally owned. Most are owned by individuals who, despite owning more than ten homes, would not be obliged to reduce the rent’, warns thethe Tenants’ Union. In the rest of the Catalan municipalities, where the concentration of property ownership is lower, this measure is, in their opinion, ‘totally decaffeinated’.

On the other hand, it seems that the application of the reduction will be discretionary, leaving it up to each autonomous region and even each municipality to decide. On the contrary, Chirino argues that, if it is a public measure, ‘it should be binding for all, as otherwise it can generate inequality and territorial inequity’.

A dignified life for young people

Beyond the regulations on the price of rent, the new law should make a series of aids available to young people. But the difficulties of emancipation do not seem to have a definitive solution. To begin with, although housing should not account for more than 30% of a person’s salary to ensure a decent life, the reality is that prices are skyrocketing and salaries are too low.

Thus, if the average salary of young people in employment in Spain is 969 euros, the amount that should be spent on housing should not exceed 290 euros per month. However, the average rental price is 880 euros per month and, in certain areas of the state, such as Barcelona and its metropolitan area, the figure exceeds 1,000 euros. So, how can we help young people to emancipate themselves?

The Tenants’ Union s believes that, in order to facilitate emancipation, it is necessary to get to the root of the problem: ‘We must ensure that all rental housing lowers its price and facilitates access to vulnerable groups. In Catalonia, many housing collectives are calling for a public rental housing stock at affordable prices. It is not a question of building more, but of recovering housing and ensuring that large owners allocate part of it to social renting’, they argue.

The CNJC has also set up tenant self-defence workshops to detect the difficulties faced by young people and try to find answers. ‘In Catalonia, we already have a law regulating rental prices that has been incredibly effective. It has reduced rental prices in those areas where it has been applied and has also improved confidence in renting’, they argue. Now, they believe, what is needed is to improve this Catalan regulation and extend it to the whole territory. ‘We still have a long way to go,’ they say.

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