José Luis Mateo (Palma, 1970) has been Minister of Housing, Territory and Mobility of the Government of the Balearic Islands since July. The until then deputy of the Popular Party in Parliament, is now trying to appease the housing crisis, especially aggressive in his territory. Mateo, a doctor in Law, is aware of the seriousness of the problem: “We are very clear that the caravan cannot be a housing solution,” says the counselor, who resides in the Balearic capital in a house he owns, via video call. Among its objectives are to expand the affordable rental stock for residents by capturing empty homes and it does not rule out, if the European Union opened that door, even prohibiting the purchase of houses by foreign investors.
Ask. Recently the citizens of the Balearic Islands have demonstrated over the housing crisis. What do you think when you see these protests?
Answer. We are very aware that the housing problem concerns us all and we have to get involved. It is a multifactorial problem, which also has to do with the island issue because we are a limited and eminently touristic territory, in which vacation rentals also play an important role.
We are very clear that. We are open to collaborating with the Government of the nation and it would seem ridiculous and irresponsible not to join forces. Another thing is that, logically, we do not share some of those solutions, but not sharing does not mean not collaborating or not wanting to solve the problem.
P. In May, Parliament approved a law on urgent measures on housing. What does it contemplate?
R. The main measures of this law, which comes from the housing emergency decree, are that business premises can be transformed into housing, that a large home can be divided or that certain buildings can increase heights, always studying the load capacity.
I wish it were possible, but short-term solutions are complicated. In that sense, the first two measures can already begin to give results, along with the program that we have just launched, Lloguer segur (Secure rental), to obtain empty apartments from individuals. It is a measure for citizens, in fact, one of the requirements to be a tenant is to have a minimum of five years of residence in the Balearic Islands.
P. However, the Government has questioned the constitutionality of this law. Will it be able to be applied?
R. From the Government we received disagreements about our law. The reason is that the appropriate instrument to take these measures corresponds to each municipality through its planning, but if we leave it in the hands of the city councils it can take five, six or even ten years. The emergency decree law would lose its reason for being, we believe that the Government will appreciate that we are facing an emergency measure. Furthermore, it is important to say that it is not a regulation that was imposed on city councils.
And then there is another issue on which the possible constitutionality is questioned: the mandatory registration of real estate agents (API). It is true that it has no signs of prospering; Housing Minister Isabel Rodríguez told us that it was difficult to maintain it because Europe was being extremely strict with this issue.
P. What has been the response of the town councils?
R. 80% have joined to a greater or lesser extent.
P. Is there a quantification of how many homes could come on the market with this plan?
R. In this first shock plan, which includes the initiatives of the emergency decree law plus the program build to rentwhich is to build rental housing at affordable prices and which is a public-private initiative, we hope to obtain 4,000 homes.
I do not forget, because it is very important, the public promotion of rental housing. Furthermore, with the Safe Rental program we intend to obtain 2,000 to 3,000 houses that are empty. We believe that there is a very high percentage of owners who do not feel sufficient legal security to rent, who fear not being able to collect rent. In these homes, a maximum appraisal price is set by the APIs and property managers because we try, as far as possible, to avoid speculation.
P. How is speculation avoided in this case?
R. In Mallorca and Menorca, the maximum price that an owner can charge per month is 1,500 euros. And in the case of Ibiza and Formentera, a higher limit is set, 2,100 euros. The Administration assumes 30% of the rent payment, so that the maximum that a tenant can pay in the case of Mallorca and Menorca is 1,050 euros per month, and in the case of Ibiza and Formentera, it is 1,470 euros. Furthermore, to avoid speculation, APIs and property managers charge a fixed amount of 1,500 euros.
P. The Balearic Islands filed an appeal of unconstitutionality against the state housing law. There is no way they are going to declare tension zones in their region?
R. No, this is one of the points that we put on the table in the working meeting with the Minister of Housing. Here . We believe that the measure of capping the rental price has not produced results, it ends up putting more tension on the market and, therefore, also increasing prices. We believe more in incentivizing the owner.
P. The possibility of limiting the purchase of homes by foreigners has been on the table on several occasions. Will it be applied?
R. The problem we face is that currently the European Union does not see it as applicable. But if we had support at all levels, if that possibility is granted from Europe, we are the first to put it on the table.
P. Are there tax or economic incentives for developers to make housing affordable?
R. We are exploring all avenues, we are thinking about incentives, but I would also like one thing to be clear: the housing problem belongs to everyone and we all have to buckle up. We tell builders and developers that the profit margin must be narrowed. The public Administration is making an effort not seen to date.
P. One of the problems of the islands is tourist housing, with a high percentage of illegal supply. How are they going to combat it?
R. We are before The fight against illegal supply is essential. Unfortunately, very little has been done over the last eight years, but now the island councils and the town councils themselves are being relentless with tremendously severe and restrictive measures. We offer these owners a way out, which is to put the home on the long-term rental market.
