The solution to housing is easier than it seems

Housing has become one of Spain’s major problems. Yet I feel we are seeking increasingly complicated solutions to a problem that might be addressed much more simply.

I do not claim to have the absolute truth. As CEO of Constructores.com, I have the opportunity to see at close quarters the difficulties faced by people who want to build a home and by the companies that must make it happen.

Drawing on that experience, I would like to share some reflections.

The first step would be to distinguish two problems: the rental market and access to home ownership. Their solutions are not necessarily the same.

In my opinion, excessive intervention in relations between landlords and tenants can produce the opposite of the intended result: fewer homes available and higher prices.

Why not make investment in rental housing an especially attractive option for Spain’s millions of self-employed people, small business owners and savers?

I would propose five measures:

1. Remove Spain’s property transfer tax (ITP) for people who buy a home and commit to renting it out as a primary residence for at least ten years.
2. Exempt the net rental income from Spanish personal income tax (IRPF), provided these homes are actually used for residential letting and meet certain conditions.
3. Guarantee legal certainty, protecting vulnerable tenants while also offering swift judicial remedies against deliberate non-payment.
4. Ensure regulatory stability, so people investing a lifetime’s savings know the rules for the coming years.
5. Give particular incentives to affordable, long-term rentals, preventing tax advantages from becoming a tool for speculation.

Imagine how many plumbers, electricians, shopkeepers, transport operators or small business owners would consider buying a home to rent out under these conditions.

We would turn private savings into a source of housing for other families while giving these small investors additional retirement income.

Naturally, buying existing homes does not in itself increase the housing stock. These measures should therefore encourage bringing empty homes back into use, renovating buildings and developing new rental housing.

I believe the solution lies more in increasing supply than in continuing to try to manage scarcity.

The second problem is access to ownership.

Today, building a 100-square-metre detached house can cost around €180,000, using an indicative construction cost of €1,800 per square metre.

Add a plot costing between €90,000 and €200,000, VAT, professional fees, permits and other expenses.

A relatively modest home can end up costing over €300,000.

How can a young couple on ordinary incomes afford such an investment?

Here I would propose two major changes.

The first would be to review land availability intelligently.

From motorways, we all see large stretches of rural land, some yielding very little agricultural income.

Why not study the urban development of certain plots, provided they have no special agricultural or environmental value, are close to urban centres and can receive the necessary services?

A developer could buy that land well above its rural value, also benefiting its owners, in exchange for committing to build primary residences at established maximum prices.

I am not talking about indiscriminately developing our countryside, but about studying where we could build more homes sustainably and in an orderly way.

The second change would be to commit decisively to industrialised and modular construction.

I have explored different prefabricated housing systems and spoken to builders with far more experience than me. Many agree that this is an extraordinary opportunity.

Manufacturing housing components or modules in factories can shorten schedules, improve quality controls and, in certain projects, reduce costs.

We should also dispel a prejudice: a prefabricated home need not be of lower quality. It can be a modern, efficient, durable and comfortable house.

If we combined these systems with faster permitting procedures, while retaining technical and planning safeguards, we could make significant progress.

I believe the state plays a fundamental role in protecting citizens, planning land use and supporting vulnerable families.

But it will struggle to solve this problem without mobilising private investment, enabling construction companies to operate and making use of new technologies.

Instead of continually asking how to limit the prices of scarce homes, perhaps we should concentrate on ensuring there are many more of them.

I do not claim to offer a miracle solution. These are proposals open to debate, which should be tested against evidence and studied seriously.

But I do hold one conviction: we cannot resign ourselves to a home depending increasingly on an inheritance or an exceptionally high income.

Our parents and grandparents could aspire to build a house through their work. We should try to ensure that our children can too.

Ultimately, the success of housing policy should not be measured by the laws passed or the announcements made.

It should be measured by the number of families who achieve something as simple and as important as having a home.