Place-based anti-speculation housing policies

Countries

Spain

Policy areas

Organisation name Municipal Institute of Housing and Renovation

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Contact person: Eduard CabrŽ Romans

ecabrer@ext.bcn.cat

https://habitatge.barcelona/en/about-us/municipal-institute-housing-renovation

Barcelona suffers from a housing affordability crisis and limited resources in terms of land and capital to develop new public, social and affordable housing. This is why the city is looking at the private housing stock as a source of housing that could be removed from the market and offered at a below-market price. The city has a very low vacancy rate (estimated at below 1.5%), but most vacant dwellings remain so because of limitations on the part of landlords to maintain them. Concurrently, Barcelona is living with an increase of real estate activity and is witnessing the displacement of long-term residents as a result of speculative investment. There is therefore a need to intervene where neighbours are being displaced, to ensure their right to housing and everybody’s right to the city.

Barcelona City Council has launched the Right to Housing Plan 2016–2025, which includes specific measures to curb speculative practices in the private housing market and guarantee the right to housing, especially in the neighbourhoods most affected by gentrification. This policy takes place in the framework of several other housing policies to increase the public housing stock in the city, promote the construction of affordable units by the non- and limited-profit private sector, and put a hold on tenant harassment in the private rental sector.

This set of policies is based on a territorialised diagnosis of residential vulnerability, using data from the census of vacant housing and illegal touristic uses (elaborated through a job placement programme run by the public agency Barcelona Activa). It also relates to a study of vulnerable areas carried out in collaboration with the Polytechnic University of Catalonia (UPC) and based on the resulting indicators, Barcelona City Council has developed two sets of measures:

  1. Acquisition of housing units in the private housing market with the aim of curbing the displacement of neighbours and increasing the public housing stock in severely stressed areas where there is no affordable housing stock. This policy is usually accompanied by the rehabilitation of these homes and their subsequent management by the Municipal Institute of Housing and Rehabilitation (IMHAB). Since 2015, the city has acquired 661 housing units, with a public investment of €73 million.
  2. Mobilisation of private housing for affordable housing through bilateral agreements with private landlords. This policy is divided between the Intermediation Programme (Rental Housing Pool) and the Cession Programme, managed by the non-profit organisation Habitat 3. The Rental Housing Pool is based on bilateral agreements between landlords and the city by which the latter offers incentives in exchange for affordable rentals for a period proportional to the incentives received. The city has launched a specific campaign – ‘You have the key’ – to add housing units to the programme.

Both the acquisition of housing units in the private housing market and the mobilisation of private housing for affordable housing programmes have had an impact in neighbourhoods. These are the areas that are severely stressed by gentrification processes, and where the city does not have many public housing units or land to build on. In addition, the combination of rehabilitation subsidies, subsidised taxation, guarantees, direct investment through private acquisitions and participation in job placement programmes have created a virtuous circle. This guarantees citizens the right to housing in their own neighbourhood, while ensuring their personal autonomy and the adequate upkeep of the housing stock.

The city has already acquired 661 private dwellings that have become part of the public housing stock. Another 1125 private units were mobilised in 2018 and have been made temporarily affordable to low-income households through the Rental Housing Pool and the Cession Programme. An important feature of this policy is that it allows the city to increase its public and affordable housing stock in areas where there are few or no opportunities to develop new housing. This ensures a social mix and inclusive communities across Barcelona. The Acquisition Programme has also meant that the city has stopped displacement in gentrifying neighbourhoods, by allowing residents that were threatened with displacement to remain in their homes.

Since 2015, the city has acquired 661 housing units, with a public investment of €73 million. A total of 1125 homes (867 in the Rental Housing Pool, 258 in the Cession Programme) were managed by the two programmes in 2018, which has meant a direct public investment of more than €2.6 million in the Rental Housing Pool. In the Cession Programme there has been a total investment of €1.4 million during the 2015–2018 period, 20% of which is public subsidy and 80% of which comes from the rents.

The Acquisitions and Rental Pool programmes rely heavily on capital investment from the city, which has a strong and long-lasting commitment to continue to fund them in the future. The Cession Programme is less dependent on public subsidy (only 20%) as most of the renovation works are funded with part of the rents collected by the intermediary, Habitat 3.

Other levels of government as well as different Member States could replicate this policy, which can help them to 1) tackle gentrification (Barcelona’s primary goal) and 2) promote the rehabilitation of the existing housing stock. One way in which other levels of government can support this policy is by providing funding to local authorities so they can implement them.

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