The meager results of the government's secure rental program: 27 homes in eight months

Palm"With this program, we want to break the barrier that prevents many owners of empty apartments who, as real estate agents tell us, prefer to keep their homes empty for fear of non-payment, damage, or bad experiences." These were the words of Prime Minister Marga Prohens on October 21, 2024, when she presented one of the Executive's flagship housing measures: the Secure Rental Program. Although the acquisition of apartments began in November, the results today do not show that there are "many owners" in the circumstances detailed by Prohens: after eight months of the program's activity, the initiative only has 27 apartments, 25 in Mallorca, 2 in Menorca, and towards Ibiza and Formentera.

These are the figures provided by the Government in response to a series of questions from the spokesperson for Més por Menorca, Josep Castells, and published in the Official Gazette of the Parliament (BOPIB) on August 1. Curiously, Castells' eight questions receive practically the same answer, with an identical text in which only the name of the island and the number of apartments change ("Within the framework of the secure rental program, agreements have been signed x contracts in xxAs Minister José Luis Mateo has announced on several occasions, contracts began being signed two months ago. The secure rental program already has 27 homes, the vast majority of which are three-bedroom apartments: this is the formula used by the Ministry of Housing in the eight responses. Furthermore, the Government is positive and states that the program "already has 27 homes," most of them "three-bedroom apartments," which represent a paltry figure compared to Ibavi, where the waiting list for social housing is practically 8,000 people, many of whom are single families with children.

According to the Government's statement in the note of the program presentation (October 21), the goal was "to achieve between 2,000 and 3,000 homes in the first phase." "It is expected that the first homes can be delivered this year," the statement continues. Although no timeframe was specified for this "first phase," the results are far from what was announced. Even so, the Regional Minister of Housing, Territory, and Mobility, José Luis Mateo, has consistently spoken of a "good balance" of results and emphasized that this is an initiative that "gives the Government a lot of work."

The fluctuating figures have been a constant since the program was launched. Mateo stated in Parliament in February that there were 150 homes in the "advanced process of joining the program." Three months later, in May, there were 94 in the final phase of signing contracts, although he also confirmed that there were more than 400 apartments owned by owners interested in the program.

Criticism from the opposition and unions

The opposition and unions have criticized the meager results of the secure rental program. PSIB spokesperson Iago Negueruela has questioned the initiative's effectiveness because, "when a contract ends, everyone wants to raise the previous rent by more than 100%." Transferring an apartment to this program entails a maximum price of €1,050 in Mallorca and €1,470 in Ibiza and Formentera. If an apartment is valued at €1,200 per month, the tenant will pay the Catalan government €890; if it is valued at €1,000, the rent will be €700; and if it is valued at €850, the tenant will pay €595. The price will be adjusted as in the conventional market. These profits are far below those generated by tourist rentals in many of the properties that host visitors.

The spokesperson for Més por Menorca, Josep Castells, lamented that the program "only appeals to developers and real estate agents." Más por Menorca also denounced that, after the Government delegated management of the program to the Association of Real Estate Agents, this body appointed the private company Portal Balear Inmobiliario SL to collect personal data from tenants who wish to register, thus violating their privacy.

According to MÉS por Mallorca, the program "institutionalizes real estate speculation." "It's those who rent and can't pay their rent who are afraid, not those who speculate in housing," Ferran Rosa stated in Parliament, criticizing the government's decision to subsidize part of the market price instead of lowering prices, which benefits owners. For its part, the UGT warned of the possibility that the secure rental system could have a detrimental effect and serve to raise rental prices. In October, the union demanded a six-month period to review the trend in rental prices. However, eight months later, the program's impact is almost nonexistent.