The precarious labor situation of young people, limiting access to home ownership, contributed to inflating rental prices
EDITING |
The Bank of Spain warns about certain public policies, such as price control on the rental, which undermine legal security and reduce the supply of an activity heavily affected by the coronavirus pandemic.
The Bank of Spain insists on rejecting price controls in the rental market, an option that the Government was exploring before the outbreak of the coronavirus.
Furthermore, the banking supervisor has warned that the "substantial macroeconomic impact" that the coronavirus health crisis will have could worsen both the difficulties of housing accessibility and the risks associated with the real estate market.
We can affirm that at higher rental prices, investors looking to profit from renting are willing to pay more for an apartment. And, at the same time, if the price paid for an apartment is higher, more will be charged for the rent later.
