Barely over the results of the British referendum and the many opinions of how this will affect the Spanish property market we are faced with another major event which could have consequences to the Spanish property market – the Spanish General Election.
Following a Spanish election in December 2015 which failed to show a party with a majority Spain was forced to go to the polls once again only a few days ago. In the recent election the PP (Popular Party) led by Mariano Rajoy did well but did not get a majority. This means that they will have to form a coalition government. This is a good sign for the Spanish property market which was worried that the left Unidos Podemos party would gain ground and make life hard for the property market. If Podemos had risen to power they would have made life hard for those in the property market.
What are the Spanish political party’s policies on the property market?
Unidos Podemos
A vote for Podemos would have meant the introduction of some of his policies which include banning speculative developments, encouraging people to occupy empty homes illegally and turning the Spanish Bad Bank, Sareb into an organization for social housing.
Popular Party
On the other hand the PP policies include the encouragement of energy efficiency, controlling harsh mortgages, alterations to the Horizontal Property Art and the rationalization of holiday rentals laws.
PSOE
If the PP is forced to include the PSOE in their coalition government they may have to incorporate some of the PSOE ideas for the property market into government policy like the fining of banks for possessing unoccupied houses and the withdrawal of some of the present tax breaks given to homeowners.
Citizens Party
There is a strong possibility that the Citizens Party will be part of the new coalition government in which case we could see the formalization of debt for property swaps, the removal of inheritance tax on inherited homes for the middle and working classes and the provision of social housing for people who have lost their homes due to foreclosure.
Other policies which would be welcomed by the Spanish property market but which have yet to be introduced by any of the parties include the reduction of transaction costs. Whatever the outcome of the coalition plans a stable government will be best for the Spanish property market. With PP at the helm we are unlikely to see any new policies which effect foreign property owners in Spain but we could see changes in the rental property laws.
