The PSOE / UP coalition government has approved in the Council of Ministers a battery of measures to “rescue” some 500,000 tenants affected by the economic consequences caused by the coronavirus, according to the Executive’s estimates. Among them is access for vulnerable tenants to microcredits endorsed by the State, a six-month extension to contracts that end as of April 1, or prevent evictions until the end of the year.
The measures that have been approved in the Council of Ministers this Tuesday, March 31, are:
- A suspension of evictions for those tenants in vulnerable situations that they are left without a housing alternative. The suspension will reach six months from the end of the alarm state.
- For those tenants in vulnerable situations microcredits to banks will be approved, without interest or commissions, endorsed by the State that can be returned in six years. In case of not being able to return it within that period, it could be extended to four more years.
- They may take part in this microcredit program all those who cannot afford to pay the rent for their houses due to the loss of their job, under an ERTE or reduced working hours. This measure is also extended to the self-employed who are suffering a substantial drop in their income in order to pay their rents.
- Also, a extraordinary extension of six months in contracts lease of the habitual residence that expire in the two months following the entry into force of this rule. This means that the landlord will not be able to raise the rent for the next half year.
- In the event that the owner of the rented home is a large holder or an investment fund – from 10 properties, whether natural or legal person -, the vulnerable tenant may benefit from a moratorium on the payment of rent for the duration of the state of alarm or if the vulnerability persists (maximum of four months).
- To return these deferred rent, the large holder can decide whether to make a 50% reduction of the debt that has been generated or a restructuring of the debt in the next three years.
Tenants whose landlords are large tenants are also eligible for public helplines.
For Fernando Encinar, Head of Studies at Idealista, “The current situation requires important measures to ease the crisis caused by the coronavirus for tenants and owners. However, try to legislate all possible assumptions and establish differences between owners and even among vulnerable families, depending on whether they live rented or owned, it does not seem to be the best of the ways. It is possible that it will solve the immediate present, but of course it does not seem to worry about the consequences that its measures may have for people in the medium or long term. “
“As for how this decision will affect the rent, once the situation normalizes it is unquestionable that the criteria to be able to access housing for the groups that are now being protected will be hardened, at the worst moment, which will leave them more unprotected in the future “.
The Vice President of Social Rights and Agenda 2030, Pablo Iglesias, highlighted that ” small owners who have properties for rent will receive the full incomeBut the big holders and funds will have to pitch in a little and make an effort like everyone else. “
“This decree includes very important measures for tenants in vulnerable situations. We estimate that about half a million tenants can benefit from these aids. The State is not going to let anyone down. Families who find it impossible to pay the rent or return the loans will not be evicted from their homes, the State will take care of the debt, “added the vice president and leader of United We Can.
In case the households cannot afford to pay microcredits either, they will have help that could go up to a maximum of 900 euros per month and up to 100% of the principal and interest of the loan signed with the ICO, and 200 euros per month to meet maintenance, community and basic supplies expenses with a limit of 100% thereof.
The Ministry of Transport, Mobility and Urban Agenda The cost of interest and guarantees for ICO loans is estimated at 700 million euros, 300 million in aid for those affected structurally by the crisis and 400 million through the 2018-2021 Housing Plan.
–
