Spain's Feijóo proposes splitting flats and raising buildings to boost housing supply

Feijóo proposes splitting flats and raising buildings to curb housing prices

Alberto Núñez Feijóo, leader of Spain's conservative People's Party (PP), has proposed amending the Horizontal Property Law (the law governing owners' communities) to allow flats to be split without the unanimous consent of the owners' association, and to use surface rights to increase building heights, provided the architectural harmony of the street is preserved. The measure, announced as part of his plan to increase housing supply, is complemented by a 60% reduction in housing taxes for young people and guarantees of up to 100% to make it easier to obtain a mortgage. In the economic debate, the proposal has divided opinion: while some see it as a reasonable way to adapt the housing stock to ever-smaller households, others warn it could worsen precariousness and fail to solve the underlying problem.

The housing problem and rigid land use

Spain has a structural problem of access to housing, reflected in high prices and insufficient supply in major cities. Feijóo's proposal focuses on two levers: on the one hand, making it easier to split flats to create smaller units; on the other, allowing extra height to be built on existing or new buildings through surface rights. The stated aim is to increase supply without needing to release new land, a limited resource in urban centres. However, the effectiveness of these measures depends on their concrete implementation and on the market's response.

Split flats or build higher? The two sides of the proposal

Splitting large homes into smaller units is seen by some analysts as a way of adapting the housing stock to a changing demographic reality: single-person households and childless couples are increasingly common. It is argued that many flats of more than 100 square metres, designed for large families, find no buyers today and could be converted into two 50-square-metre homes, increasing supply and easing access. Critics, however, point out that this measure could entrench residential precariousness and discourage family formation, by reducing the average size of homes.

Building upwards, for its part, is common practice in other major European and Asian cities, where residential towers concentrate population and services. Supporters argue that increasing building height optimises land use and reduces the cost per unit. But technical doubts arise: can existing structures support additional floors? The experts consulted in the debate agree that extending already-built buildings would require costly structural reinforcements and, in many cases, would be unfeasible. As formulated, the proposal does not specify whether it refers to new construction or existing buildings, which adds uncertainty.

The impact on prices: will housing really become cheaper?

One of the proposal's main promises is that increasing supply will help moderate prices. However, the empirical evidence is inconclusive. In high-demand markets such as Madrid or Barcelona, building new homes may not be enough to meet demand unless accompanied by other measures, such as liberalising land use or cutting red tape. Moreover, splitting flats may not translate into lower prices if the new formats keep the same cost per square metre or are aimed at tourist rentals.

Tax relief for young people: is it enough of an incentive?

Feijóo's proposal includes a 60% cut in housing taxes for young people, as well as public guarantees of up to 100% for mortgages. These measures aim to make it easier for young people to leave home and buy their first property. Critics, however, warn that a tax cut without a significant increase in supply could lead to higher prices, mainly benefiting sellers. In addition, 100% guarantees can increase the risk of over-indebtedness if not accompanied by proper financial education.

Reactions and scepticism in the public debate

The proposal has sparked intense debate on social media and economic forums. Some consider it insufficient and criticise it for not addressing the root causes of the problem, such as land speculation or the lack of public housing. Others see it as an attempt to deregulate the market to favour large landlords. The lack of detail on key aspects, such as the definition of "architectural harmony" or the technical requirements for extending buildings, fuels uncertainty about its viability.

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Feijóo's proposal opens a new avenue for tackling the housing problem, but its success will depend on how it is implemented and whether it manages to balance the necessary adaptation of the housing stock with the protection of owners' rights and residents' quality of life. Meanwhile, the debate remains open and the housing access figures offer no respite.