The announcement by the President of the Government, Pedro Sánchez, during the 41st Federal Congress of the PSOE, that the Government will create a large public company for the construction and management of housing has generated some concern in the residential real estate sector due to the bombast of the message and because It has not been accompanied by any details that could give clues to their plans. One of the first to speak out has been the National Construction Confederation (CNC), who believes that Sánchez’s idea will not serve to solve the housing problems that exist in Spain.
“A large public company will not solve the housing problems that Spain is experiencing, mainly led by a shortage of supply and legal uncertainty,” the employers’ association said in a statement on Monday. The association that represents the vast majority of the construction sector, assures that the Government’s diagnosis is wrong and warns of possible collateral effects of granting the construction and housing management tasks to a State company, when there are more agile formulas such as public-private collaboration, which “allows autonomous communities and city councils to take advantage of the capacity, experience and dynamism of companies to offer services, including management, that without them would not be feasible from a budgetary point of view.”
“CNC is wary of the bureaucratic and resource complexity that would entail creating a company that in the short term would have to be oversized to be effective, but that in the medium term could prove unviable,” they say in the letter. The employers’ association estimates that they need to build around 220,000 homes annually to begin correcting the deficit and to do so they say that Spain has “the best companies in the world to solve housing problems,” according to its president Pedro Fernández Alén. “We do not need a public company, but rather put an end to legal uncertainty to increase supply, streamline procedures, optimize efforts, shorten action periods and work in a united and coordinated manner, away from political noise,” the leader said this Monday. of the construction companies.
The promoters also ask for a stable regulatory framework
Regarding Sánchez’s plan, the promoters have also spoken through the main employers’ association in the sector APCEspaña, who urged the Executive this Monday to specify what the new entity will be like and the budget allocation that will be allocated to it. In a statement, they warned the Government that the housing development sector requires “very high professionalism”, in addition to a “clear, fair and stable over time” regulatory framework, which allows the necessary investments to be made to develop projects. with guarantees and without regulatory changes” that can cause delays “and even paralyze the promotional activity.”
«Housing construction is a capital-intensive activity, and for this announcement to have the necessary credibility, in addition to needing details of what this new entity will be like, it is necessary to know the budgetary allocation that is going to be allocated to it, so that it does not “It remains a simple announcement in a political event,” was the message launched by APCEspaña.
The promoters, in any case, reminded the Government that if they want to promote effective measures for the creation of housing supply, “they should focus all their efforts on carrying out the reform of the Land Law”, which has been at a standstill since the past. month of May when the PSOE decided to withdraw it on the same day that the vote was going to take place due to the lack of support.
With the same objective of encouraging the construction of houses, APCEspaña asked to encourage local and regional administrations to make public land available to public and private developers and reiterated their willingness to “promote effective tools” of public-private collaboration that allow increasing the housing stock in Spain.
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