The Council of Statutory Guarantees of Catalonia has issued its opinion on the bill of measures to prohibit the speculative use of housing and land, an initiative promoted in the Parliament of Catalonia that proposes new restrictions on the destination and use of certain properties. The opinion considers that several of its provisions do not conform to the constitutional and statutory framework. Among the issues raised are the right to property and inheritance, freedom of enterprise, the foundations of contractual obligations, and the principle of legal certainty. The ruling also questions the procedure chosen by the Parliament to process the proposal through a single reading.
The opinion of the Council of Guarantees is not binding, so it does not prevent the initiative from continuing its parliamentary processing. It does raise legal objections regarding different elements of the proposal that must be assessed during the legislative procedure. The Parliament keeps the initiative open within the file 202-00076/15.
An initiative from the CUP on the use of housing
The analyzed proposal corresponds to file 202-00076/15 of the Parliament and is titled “Proposal for a law of measures to prohibit the speculative use of housing and land”. The initiative was presented by the CUP-Defend the Land and proposes to modify different regulations to introduce measures aimed at limiting certain operations considered speculative in the real estate market. The Parliament admitted the proposal for processing in March and the initiative requested its processing through the single reading procedure.
The proposal is part of the set of initiatives being debated in Catalonia to try to contain the increase in housing prices and increase the availability of housing intended for permanent residence.
The right to property, at the center of the opinion
One of the main legal objections raised by the Council of Guarantees affects Article 33 of the Constitution, which recognizes the right to private property and inheritance. The advisory body considers that the restrictions proposed by the proposal on the destination of certain properties may affect that constitutional right.
The issue refers to the fact that the initiative is not limited to regulating certain urban uses, but introduces conditions linked to the purpose that can be given to a home acquired in certain cases. The legal debate lies between public competencies in housing and urban planning and the constitutional rights of property owners.
It also questions business freedom
The opinion also points out Article 38 of the Constitution, related to business freedom. The issue particularly affects real estate operations carried out by companies and large investors, on which the proposal intends to establish limitations when certain acquisitions have a use considered speculative.
The initiative seeks to intervene in practices such as the acquisition of homes to subsequently modify their purpose, obtain a capital gain, or replace certain residential uses with more profitable exploitation formulas. The Consell considers that some of the proposed restrictions impact business freedom and that the text does not meet the proportionality test required to limit rights.
Contractual obligations pose another legal problem
The opinion also points to state competence over the bases of contractual obligations. The issue relates to Article 129 of the Statute of Autonomy of Catalonia and Article 149.1.8 of the Constitution, insofar as the proposal introduces effects on the conditions of use and purpose of certain properties that may have consequences on private legal relationships.
The Consell places this issue in the distribution of competencies between the State and the Generalitat. Catalonia has competencies in housing and urban planning, while the Constitution reserves certain matters for the State.
Legal certainty, another of the objections
The advisory body also questions the sufficiency and precision of some concepts used by the proposal. Specifically, it considers that the text may generate problems of certainty and predictability and, therefore, affect the principle of legal certainty recognized in Article 9.3 of the Constitution.
The objection refers to the way in which certain restrictions are defined and to the legal consequences that may arise from their application. According to the analyzed text, a regulation that limits rights must establish with sufficient precision which behaviors are affected, under what circumstances, and what the consequences are for owners and buyers.
The single reading procedure is also questioned
The opinion is not limited to the material content of the proposal. The Consell de Garanties considers that the use of the single reading procedure does not comply with the requirements demanded for this type of parliamentary processing.
The proposal consists of seven articles and two provisions and affects different areas of housing and land regulation. The Consell considers that its content does not meet the necessary conditions to justify an expedited processing.
The local world was also not consulted
Another of the objections refers to the participation of local entities. The Consell points out that the processing did not incorporate the opinion of the Consell de Governs Locals, despite the fact that the initiative assigns certain functions to the municipalities.
The proposal contemplates that municipalities located in areas of tense residential markets may establish conditions regarding the destination of certain housing acquisitions. By directly affecting municipal competencies, the advisory body considers that the absence of that consultation also poses a problem from the perspective of the article 85 of the Statute.
An initiative linked to the housing policy of the Govern
The opinion arrives at a time when the Govern de Salvador Illa has placed housing among its main areas of action. The Generalitat has promoted during the legislature different measures related to tense areas, public housing, limits on rent, and the regulation of certain uses of properties.
The proposal against speculation is integrated into that scenario, although its authorship corresponds to the CUP and its parliamentary journey depends on the support it can gather. The councilor of Housing, Sílvia Paneque, has stated after the opinion was known that the Govern will continue seeking legal ways to protect access to housing.
PP and Junts demand that it be withdrawn
The content of the opinion has provoked the reaction of the groups that had opposed the initiative. The PP has demanded that the PSC not proceed with a regulation that, according to the popular party, presents constitutional problems. Junts has also highlighted the conclusions related to property rights, business freedom, and legal security and has questioned both the content of the proposal and the way it has been processed.
The Association of Promoters and Builders of Buildings of Catalonia (APCE) has demanded the withdrawal of the initiative and has warned of the effects that, in its opinion, a regulation that increases legal uncertainty in the real estate market may have.
The Comuns maintain the objective
The Comuns, one of the groups that have promoted measures against speculative buying, do not share the conclusions of the Council. Their parliamentary leader, Jéssica Albiach, has defended that the objective of the initiative is not to prevent the acquisition of housing, but to regulate the use of certain properties to avoid them being used for speculative purposes.
The Comuns have proposed to continue working with the groups in favor of limiting the concentration of housing in the hands of large investors to find a formula that can overcome the legal objections raised.
The opinion does not close the processing
The pronouncement of the Council of Statutory Guarantees does not imply the automatic withdrawal of the proposal nor does it prevent the Parliament from continuing with its processing. The initiative remains open within the file 202-00076/15.
The parliamentary groups must now decide whether to maintain the text in its current terms, introduce modifications to address the objections raised by the consultative body, or reconsider the initiative. The debate is pending the response that the Parliament will give to the constitutional, statutory, and procedural issues raised in the opinion.