State vs. Tenant: Couple Who Paid €900 in Moncloa for 19 Years Must Now Buy for €700,000
The General Treasury of the Social Security (TGSS), owner of 4,115 homes in Spain, denied a lease renewal to Miguel and his partner, tenants since 2007 of an apartment in Madrid’s Moncloa district. The sale price: €700,000. With no income (he is unemployed, she is studying for civil service exams), their only alternative is to leave. This case exposes the schizophrenia of a State that legislates against major landlords while acting as one itself.
Miguel accessed this public housing during Zapatero’s government with rent far below market rates: €900 monthly versus the area’s €1,500. Over 19 years, the couple paid approximately €205,000 in rent but did not save enough to afford the purchase. Critics argue that with past earnings (he worked for a multinational), they should have built a financial cushion. However, most of the debate agrees that the real problem is the State’s position as a ruthless landlord.
The government has approved rules to limit evictions of vulnerable people, but the TGSS – the same State – does not apply them to its own tenants. Of the 4,115 properties, 874 are empty, suggesting inefficient management of the public housing stock. Additionally, the couple cannot benefit from the extraordinary two-year extension approved in 2023 because their contract is not of the protected type.
Miguel’s story is a symptom of a market where access to housing has become a privilege, even when the landlord is the State. The question remains: Is the tenant reckless for failing to plan, or a victim of a system using its own rules to expel those it was meant to protect?
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
Read the full discussion (170 replies).
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