Denis Itxaso: "If there hasn't been a social upheaval over housing, it's mainly because of the family cushion."

BarcelonaDenis Itxaso (San Sebastián, 1975), Basque Country's Housing Minister, visits the ARA (Argentine Housing Association) to explain how they are addressing the housing crisis in the Basque Country. Currently, eleven municipalities have been declared stressed areas, and since October 1, the reference price index for the province of Guipúzcoa has been in effect, affecting five municipalities, including San Sebastián, his hometown and one of the most expensive in Spain.

Housing has become the main concern of citizens, especially in the Basque Country, where 51% of the population agree. Why do you think we've reached this point?

— Well, there's an exclusion of the middle classes from the housing market. There have been several housing crises throughout history, but this one has a different connotation: basically, there's a supply problem; the number of households is growing faster than our capacity to generate housing. There are even some well-off middle classes who fear for their children's future, and this is new.

Many young people are unable to buy or rent, and many residents have been evicted from their neighborhoods. Do you fear that this situation will lead to increased distrust of politics?

— Yes, I think if there hasn't been a social upheaval yet on this issue, it's basically due to the family cushion. In Spain, this cushion operates: the income of the elderly, inheritances... it operates with the houses that have been able to be purchased in the past in much more reasonable markets, and that's sustaining it.

Catalonia has focused its efforts on large-scale construction projects, but the deadlines are long. What is the Basque recipe for addressing this crisis?

— In political terms, I usually summarize reforms, resources, and agreements. And we're talking about reducing the timescales for urban planning, land, and housing, which are incompatible with people's timescales. Urban planning procedures must be reduced, and new powers must be given to city councils so they can make decisions.

Isla has promised 50,000 affordable rental apartments, of which 22,241 are planned on 670 plots. What do you propose in this regard?

— Land in the Basque Country is very scarce. We are a highly urbanized, densely populated, and small country, with a complex terrain. We need a national land reserve, and we are designing it with an urgent measures law that will be approved at the end of the year. We have promised 7,000 homes in this legislative term, which began just a year ago. All of them will be rented: this represents a major investment so that the returns from construction will be achieved in the very long term.

And where will the money come from to make these investments?

— The role of the European Investment Bank also comes into play here, as does the fact that housing investments are excluded from the spending rule. These days, we're feeling that borders must be protected, and it seems that defense investments may be excluded from this rule. We don't oppose this idea, but we say that the European project also has a stake in housing, which requires major financial efforts.

Since October 1, the Basque Country has implemented rental price caps in five municipalities, to which Bilbao and Vitoria will be added. Do you have any data on its impact on the market?

— We've been behind Catalonia because our model is municipal, and the regional treasuries have been slow to adapt the tax modules to compile the price index. The key is that we've done so by agreement, with mayors from all parties, and we demand three-year plans to overcome the tension. Without plans, there's no declaration. The limits are useful, but they don't get you out of the problem; long-term structural measures are necessary.

Although the cap has had the expected effect on contract prices, in Barcelona, the price per square meter has risen in the last six months and the surface area of apartments has decreased. Do you fear that the cap will make it even more difficult for those without a current contract to access rentals?

— There are gaps, but the path is right. We have incorporated sanctions into Basque law for those who charge above the threshold or open tourist apartments in stressed areas. Some apartments are being rented out for short periods, but this is a quick fix. The rental market continues to grow.

One of the most contentious issues is the flight of apartments during the seasonal market. What would you say to someone who thinks it was a mistake for the Spanish government not to regulate this from the start?

— If the 2023 government had been able to, it would have passed a law that would have left the gap as small as possible for landlords, but sometimes the best option isn't the best. I'm pleased that, for the first time, Spain has a basic law that gives meaning to the constitutional right to housing. Short-term rentals are necessary, but fraud must be avoided. That's why we've created inspections and a sanctioning regime.

In the year and a half since the rent cap was introduced, Catalonia has opened 240 Consumer Protection cases related to non-compliance, but has not issued any fines. What is the Basque Country doing to prevent this from happening?

— We have a pioneering registry and a corps of inspectors, and we have collaborated on European legislation for a one-stop shop that prevents the advertising of unregistered tourist apartments on platforms like Airbnb. We inspect and collaborate with the Ministry of Housing and regional treasuries, imposing tax penalties on unregistered tourist apartments. Furthermore, we incentivize residential rentals, especially those below average in stressed areas.

The majority of autonomous communities have not implemented the housing law. Do you think this is due to political reasons or simply a disagreement on how to address the housing crisis?

— This law has two major drawbacks: first, many citizens view housing as a financial asset, a life insurance policy that never loses value. Second, polarization: the right and far right reject any structural measure simply because they oppose the government. I advocate not imposing or impeding, but rather letting each region decide according to its circumstances.

In December, they'll push through a reform to ban new licenses for tourist apartments, a highly controversial measure in Barcelona. Have you studied the impact this would have on the market?

— The number of tourist accommodation units in the Basque Country is low because the phenomenon arrived late, and many municipalities had already taken measures to discourage it. In some places, even if it's not very significant and other phenomena are more significant, we can't allow it to contradict our policy; that's why we've passed laws to curb it.

Catalonia has approved a tax reform to discourage investors and large holders by increasing the property tax (ITP). The Basque Country has one of the lowest ITPs in the country. Do you think this is a good measure?

— We have a coalition government with the PNV (Basque Nationalist Party) and an agreement that sets the fiscal course. There are no miracle measures: the problem is multifactorial, and it's necessary to address both supply and demand. Some measures are therapeutic, such as the tax cap; others are social innovation, such as subsidized housing for seniors. Tax issues related to transfers have not yet been addressed.

I ask you about another measure: last week, the Barcelona Metropolitan Strategic Plan presented a study that legally supported limiting home purchases to residential use.

— It's a complex and controversial measure because it affects private property. There are similar initiatives in the Netherlands or proposals from Bildu, but legal certainty is needed to avoid social frustration. I defend the model of public intervention in the market economy and believe the current balance with stressed areas is the right one.

The Catalan Parliament, as well as the coalition government you belong to, led by the PNV (Basque Nationalist Party), appealed the housing law to the Constitutional Court, alleging an "invasion of powers." Do you think this law was proposed from a centralist perspective?

— State law gives us more powers: previously, the Basque Country couldn't limit prices, but now it can, but we do so by agreement, not by imposition. Stressed zones aren't a panacea, but they serve to guide decisions and apply aid safely. They allow us to provide more incentives without heating up the market.