The secretary general of the PSOE Socialist party in Menorca, Pepe Mercadal, has conveyed to the members of the cabinets of the Vice-President of the European Commission, Teresa Ribera, and the President of the European Council, Antonio Costa, the possibility of capping rental prices, which is already permitted under Spanish law but is being ‘blocked by the autonomous communities governed by the centre right Partido Popular’.
‘The European institutions must help us make the autonomous communities understand that capping rent prices works to curb price increases, it is working in Catalonia and it will work in the Balearis,’ explained Mercadal, who believes that ‘Europe is looking favourably on this measure’. On the other hand, he explained in Brussels the specific situation experienced by islands such as Menorca, where the purchase of second homes by European citizens has skyrocketed. ‘All European citizens have the same right to buy a house in Menorca, therefore, those of us here are competing with the whole of Europe to access housing,’ Mercadal reasoned.
‘This means that the problem is European and, consequently, Europe must provide solutions, one of which is to discourage the purchase of second homes by non-residents,’ he stressed. ‘Only two small boats have arrived in Menorca in six years. Vilafranca went to Brussels to waste time with public money. Menorcan politicians must ask the European institutions for tools to solve the problems of Menorcans, such as access to housing,’ Mercadal argued.
The socialist explained that the European Commission is finalising its affordable housing strategy, which will consist of various legislative initiatives and reforms to state aid rules to give administrations more scope to invest in affordable housing developments. Among the legislative initiatives is a reform of the regulations governing holiday rentals, probably with stricter rules against unlicensed rental advertisements on platforms.
Mercadal hoped that ‘the EU will definitively ban platforms such as AirBnB from advertising unlicensed rental offers, a ban that European socialists already proposed in 2023, but which the PP overturned’. He also indicated that measures are expected to discourage speculation and facilitate the management of empty homes.