Private rented market in Spain: can regulation solve the problem?

Abstract

Spain has traditionally shown one of the lowest levels of participation in the rented market within the housing system in Europe. Several authors have argued that housing policies oriented toward facilitating housing access have not paid enough attention to the development of the sector, except for decreasing its regulation. During the last decade, Spain, as many other European countries, has witnessed a relative increase in demand for rented dwellings and subsequent rent increases. A debate is taking place where possible regulation and alternative ways of increasing the rent supply are being discussed to ease the persistent problem of housing access of Spanish households. We argue in this paper that rent regulation cannot be decontextualised from the housing system, especially in countries like Spain where the rented sector has acted as social housing and tenants' financial vulnerability is high. We distinguish between measures with short term effects such a rent regulations and interventions addressing the lack of rent supply with a longer impact. Finally, we advocate for a national framework that allows enough regional and local freedom to adequately solve their rented housing situation.