Spain puts a ceiling on rents. Can Italy do something? Ideas

The growth in the cost of rents is one of the most relevant issues in all European cities, for example in Milan they have risen by 45 per cent since 2015, a figure similar to that of Spanish cities, while that of other attractive Italian cities is somewhat ‘ inferior. This is why the municipality of Milan presented a new strategy for housing last month and 13 Italian cities promoted 5 work points on which to discuss with the government (so far without success). Yesterday Spain approved a law that says things that seem almost incredible compared to the Italian political debate: the Sanchez government has established a ceiling on rent growth by law (3 percent, waiting for a specific index to be created), predicted that 50,000 houses owned by Sareb (a sort of state bad company) would become social housing delivered to local authorities, and set the goal whereby 20 percent of citizens of areas with high housing tension will live in public houses within 20 years compared to the current 3 percent. Between imposing a ceiling on rents as Spain does (but also cities like Paris and New York), and doing nothing as happens in Italy, there are honorable middle ways.

Let’s start with the issue of rent support. The widespread perception is that the 3 billion cut in the tax wedge does not affect the quality of life not even of the beneficiaries. If, on the other hand, 1 billion were allocated to rent support (also as a deduction), 400,000 households in high-voltage cities would be supported with a contribution of 200 euros per month. The Municipality of Milan, with the area of ​​the former slaughterhouse where 1200 houses will be built at special prices, has followed this path: so why doesn’t the state give the same indication for former barracks or yards of public companies? The old council houses all have maintenance problems that Regions and municipalities cannot overcome. If the 110 percent model bonuses were limited to this heritage, a significant change could be made to some of the most compromised places in the city, finally using public housing funds for things of public interest. It is time to start reflecting on a system which, without safeguards, risks creating serious social tensions in many cities.

Pierfrancesco Maran, councilor for housing in the municipality of Milan