The Council of Ministers has approved the Youth Rental Bonus. Broadly speaking, a budget item of 200 million euros contemplated in the General State Budgets (PGE) that translates into aid of 250 euros per month for a period of two years. “It is going to be an important element so that housing stops being an obstacle for young people and their emancipation”, said the Minister of Transport, Mobility and Urban Agenda, Rachel Sanchezat the subsequent press conference.
However, not everyone thinks like her. “It is a homeopathic measure that It will not even reach 1.7% of emancipated young people in Spain”, they point out from the Spanish Youth Council (CJE). That is, to just over 50,000 of a total of 2,837,385 young people. And they add: “This subsidy is insufficient and innocuous to solve the serious structural problem of access to housing and emancipation suffered by young people.”
Also, it won’t do to increase the number of people who have not yet taken the step of becoming emancipated. “If this measure is aimed at young people who are not emancipated, it would only achieve a 0.7% reach among the 6,694,659 young people without emancipation”, specify from the CJE.
DIt is CCOO raise that percentage of potential beneficiaries 2% of the young emancipated population. Because with those 200 million you can attend to 66,666 grants of 250 euros per month per year.
In 2019 there were 3,447,000 emancipated young people outside their family nucleus. “That same year, 52% of households headed by a person between the ages of 16 and 29 and 32% of households headed by a person between the ages of 30 and 44 were renters. This bonus will only reach a small part of young households ”, they emphasize in the union.
Arentals more expensive
A palliative measure. This is how the CCOO has described the Youth Rental Bonus: “It does not solve the structural problem of the absence of a regulated market, nor enough public housing stock to protect this right.” AND Idealista qualifies it as “willful but wrong”. and all because it turns the State “into a subsidizer of part of the rents”.
From CCOO they do the following warning: “Rental aids, such as tax credits, a priori improve the ability to pay of people who demand housing. But, if action is not taken on the supply of housing, regulating the existing one and/or increasing the affordable supply, the most feasible is that most of this aid will end up in an increase in prices”.
This would be so because the tenant would know “of the demand’s greater ability to pay.” We have examples in Europe. Thus, for every euro invested in France, 78% of the subsidy has been captured by the owner; in the UK, that percentage is between 60% and 66%; and in Finland, 57%.
The data has been put on the table by the CJE, which points out that “in other countries, similar policies have served to increase the benefit of the owners.” From CCOO they add that this process, very probably, “will be more pronounced in areas where the demand is greater in relation to the supply”. Namely, urban areas with higher population pressure. Or what lately has been coming on name aszones stressed.
In other words, what will happen is that the available rentals will be end up concentrating in the price maximum allowed to receive the aid. Let’s remember: 600 euros. If the Autonomous Communities agree, up to 900 euros. “When they do not exceed it by demanding an undeclared surcharge. Temporary aid in the face of upward pressure on prices that may be more structural and difficult to neutralize”, they qualify from CCOO. From the Ministry they rule out that this will happen. And they point out that, in other housing plans, they have not caused inflation.
They will still have to spend a month and a half, or two months, so that it can be requested. Of course, it will be retroactive from January 1. It will be the autonomous communities that will have to decide how they pay that amount to the beneficiaries of this aid, since the Government limits itself to setting the amount of the bonus.
“Direct aid, and this is something that previous experiences have shown us, has as its main consequence the direct increase in prices and the generation of serious discrimination against tenants with slightly higher wages to these, who will have to increase their efforts in a scenario of rising prices”, says Francisco Iñareta, spokesman for Idealistic.
PTherefore, and from the real estate portal, they do not hesitate to affirm that the Bonus “mistakes the formula again and helps to create new problems”.
One of these new problems would be the possibility of a disparity of criteria when managing this aid by the Autonomous Communities. In addition to its possible dilation in time when the subsidies may be necessary as soon as possible.
“Tunderstanding taking into account the rate of youth emancipation, situated at 14.9% of the total number of young people between 16 and 29 years old in the first half of 2021the CJE demands, once again, courageous housing policies that tackle once and for all the structural problems of young people in Spain”, indicate from the institution.
Policies, in the short term, such as regulationof rental market prices, mobilizing empty homes so that they enter into leasehold circulation. Y, in the medium-long term, increasing the public housing stock.
Talso keep in mind that This aid of 250 euros per month is not compatible with other types of subsidies such as the IMV. “More than 350,000 young people cannot apply due to its restrictive requirements. According to the Social Security simulator, the IMV is only obtained if you are a young person with an income of less than 481 euros per month. Insufficient to emancipate themselves”, they highlight from the CJE.
This proposal, according to RUGE-Revolución Ugetista (UGT youth organization), seems “a smokescreen to mask a political failure such as not having been able to achieve a housing law that responds to the vital needs of society and, especially, of the most vulnerable.”