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LLAD TALKS

Interview with José Luis Mateo, Minister of Housing, Territory, and Mobility of the Balearic Islands.

Interview carried out on 4/9/2024 by Paula Serra

For the past few weeks, José Luis Mateo has held one of the most important positions in the regional ministry, as it comprises Housing, Territory and Mobility.

At his swearing-in, he said he is a responsible and humble man. I think he will need those two attitudes to take on the many, many challenges ahead of him.

The figures are frightening. For example, the price of housing has shot up to more than €3,500 per square metre on average in the Balearic Islands; 7 out of 10 young people who work still live at home with their parents and 46% of an average family’s income is devoted precisely to housing-related issues, such as mortgages.

You were so calm when you were a member of parliament, director of the Escola d’Hosteleria or lecturing at the UIB, how did you get into this mess?

José Luis Mateo: Well, first of all, thank you very much, Paula, for giving me a voice to speak about these issues. Yes, and we are talking about the main problem we have in the Balearic Islands, and I would say almost at a national and world level. If Ursula Von der Leyen herself is talking about setting up commissions and work plans on this issue, then we are already talking about very serious things. And indeed, what are we doing here? Well, in this sense, and we are talking about very personal issues, the decision was threefold. The first, personal and family, the first thing I did was to discuss it with my wife, my family, my children. And once I had negotiated the family approval, which had its difficulties, the fact is that the second factor was the President’s proposal. Having spent a year as a member of parliament, the truth is that I felt like taking on the challenge. And here I would like to add the third factor, the work already done by Marta Vidal, whom I would like to thank for the foundations she has laid in this area, in addition to the fantastic team at the Regional Ministry, some of whose members I already knew, such as Lorena del Valle, Director General for Mobility, with whom I had the pleasure of working on the approval of the Taxi and VTC law. All these factors, together with the vital moment of my children, who are at that age when if they don’t see much of you, nothing happens, made me take a step forward and think that it was the right time to take on this challenge, which, I insist, is crucial.

LLAD: We mentioned Marta Vidal, your predecessor, who also saw the problem and put the Housing Emergency Decree Law on the table, which is now being questioned by the central government. There is talk of unconstitutionality. What does this threat look like? What is going to happen now? You were talking about negotiating with your children. And with the family. You will now have to negotiate with the central government…

J. L. M.: No doubt about it. The key, I think, in general in life, is to listen first, then discuss and then negotiate. Every negotiation involves some giving up, or at least knowing that each side will have to give something up. In the case of this decree, the government has not questioned any, absolutely none, of the measures implemented in this decree, which has now become law. What is under discussion is the procedure by which these measures are intended to be implemented, whether through planning rather than the vehicle that has been used, which is a law. Of course, planning what would this mean? It would mean a substantial delay in any of these measures. In fact, what it would mean is that it would cease to be applied, and we would be talking about 5, 6, 7… 10 years to be able to reapply any of them if we go via the planning of each of the local councils.

LLAD: Do you think the Emergency Housing Decree Law can be saved?

J. L. M.: Yes, hopefully. Due to the situation of need and housing emergency in which we find ourselves, an urgent decree law has already been used, which is what decree laws are for. We then wanted to incorporate some measures from all parliamentary groups so that it would eventually become law. However, we believe that measures to solve the housing problem should be implemented as soon as possible and as a matter of urgency.

LLAD: So, this Decree Law, as we say, is in operation. How is it being applied? Because there was a whole series of measures that said that some 7,000 affordable homes for residents would be available on the market. Where are we now?

J. L. M.: Well, for a start, when we talk about those 7,000 dwellings, we are not only talking about the Decree Law, which was later converted into Law 3/2024,but it also provides, for example, for the construction of more than 500 dwellings planned by the current Govern.

LLAD: There were homes pending delivery. Why?

J. L. M.: Yes, some have already been delivered. We are talking about more than 300 homes planned by the previous Govern, and those ready to be delivered have already begun to be handed over.
They were not in good condition, there were severe technical problems, and some contravened municipal regulations, and we could not deliver them. So, as soon as it is possible to deliver them, it is being done. It has been done in Menorca and Marratxí and soon also in Marratxí and Molinar. In other words, we work non-stop. Public housing is one of the essential pillars of the Govern’s policy, and we at the IBAVI do not want to forget about it. In fact, we want to reinforce its purpose, because we are talking about, I insist, more than 500 housing units in this legislature, included in the 7,000 we were talking about before. Also, apart from this Decree-Law, there are other programmes, such as Lloguer Segur or Construir para Alquilar, which are also another of the key projects of this legislature.

LLAD: Developers say we need 16,000 homes in the Balearics, at affordable prices, i.e. between 200 and 300,000 euros. Of course, in order to promote and build, you really need land, and that is one of the main problems. There is no land available at affordable prices, which would make it profitable for the developer and the builder to work. This is one of the main problems. The land is often in the hands of the municipalities.

How are municipalities really responding? Are they making land available?

J. L. M.: The measures this law intends to implement gave the different local councils a period of time to adhere to it, or they also had the opportunity to suspend its application.
We are gathering the numbers right now. Most municipalities have joined in, and in fact there are many of them who, by not saying anything specific, automatically end up joining whatever the law says. From there, from the Directorate General, they are passing on the first numbers.
The city councils have given the OK, and now is time to start working on each of the measures in order to have by the middle of next year exact numbers of the specific response and initiatives and projects that will come from the application of this law.

LLAD: The Decree-Law also talked about increasing the height, converting commercial premises into dwellings, or even dividing very large dwellings into two or three. Is there market acceptance?

J. L. M.: Yes, there is acceptance. It is true that raising the height is a measure that is being accepted and being analysed in the most populated municipalities, as is the case of Palma and Inca. In other municipalities, it does not make as much sense, and they are more reluctant to apply this particular measure. But we have a large number of municipalities that have joined most of the initiatives.

LLAD: One out of every three homes in the Balearic Islands is barely used. Your flagship project, Safe Rental, aims to correct this anomaly. What does it consist of? When will it be launched?

J. L. M.: This programme will undoubtedly be launched this autumn, if not in September, then in the following month. It is one of the star projects because it will make it possible to bring to the surface those dwellings that remain hidden, not because of the express will of the landlord or the owner but, fundamentally, because of the owner’s fears. They are reluctant to rent because of legal uncertainty. Because of fear. We are faced with a state regulation that, to a certain extent, does not protect the owner or overprotects the tenant in certain circumstances. This results in the landlord preferring to hold on to or even sell their property rather than renting it. This is what we want to avoid with this measure. And within the limits allowed by the state Housing Act, of course, we are launching this project so that the government becomes the guarantor of the success of that contracting, so that it will be the government that will be in charge of getting in touch. Here, we also count on the invaluable collaboration of real estate agents and property managers who will act as intermediaries, who will first look after the conditions of the properties but also the specific situation of the tenants and will manage the contracts. From then on, the Govern will ensure that the owner can be properly paid, even bringing forward the collection of rental payments, and that they also know that, in the event of any situation or problem of uncertainty in their rights, they will be under the protection of the government, which will provide them with all the necessary help so that, as the name of the project, Lloguer segur, says, they can feel safe renting their home.

LLAD: And the tenant will also be able to obtain the guarantee of a reasonably priced rent…

J. L. M.: Indeed, this price reduction is financed by the government and therefore we are now in the process of budget negotiations. When we talk about this project at the level of the presidency and with the IBAVI, which plays a very important role in this area because it is the one that has negotiated with the real estate agents and property administrators, it is clear that it is one of the projects that must receive funding and that it must have a budget because we also believe that it is one of the measures that, in the short term, can give very positive results.
Because there are other measures we have talked about that will yield more long-term results. In fact, we are now collecting data to see how they can be implemented.

LLAD: You often say that we cannot be short-sighted. On this issue of the housing sector, a great twenty-year pact is always called for, so that we do not stumble around, but rather that we establish clear rules between everyone, between all the political parties, between all the sector, in order to move forward. A new Housing Law and a new Urban Planning Law have been promised in this legislature, will we see them?

J. L. M.: Yes, we will see these two new laws, which we will support with the Housing Observatory, a key entity because it will allow us to gather data that explains the current situation and monitor how the housing situation evolves at all levels in the future. Only with accurate data can reliable decisions be made, both in the short and medium-to-long term.

LLAD: Maybe you can tell us a little bit more… in this Housing Law, one of the measures that has been announced is aimed at the issue of squatting, right?

J. L. M.: Yes, on this squatting issue, again, we are back to the same thing. On the one hand, we have short-term measures that we will implement now. We have offices in the different islands that can offer advice and help to those people who find themselves in the situation of having their home squatted and do not know what instruments to use to find a solution to this problem. But on the other hand also, in the medium and long term with the Housing Act, a series of measures will be implemented precisely to fight this problem. For example, squatting should be considered a serious sanction in the Housing Law itself, or squatted owners should not have to pay certain taxes. They should not have to pay for the utilities of the squatted house as they are not the ones who are using it, or those who have squatted a house should not be able to access the IBAVI lists to apply for a flat.
These are measures, I insist, that go in only one direction and that is to protect, on the one hand, private property and the rights of property owners and, on the other hand, something as simple as prosecuting a crime.

LLAD: We often say that the high foreign demand is one of the causes of all the problems we have in the Balearics with housing. I read recently that out of every three transactions, one or two remain in the hands of foreigners. But you are not planning to set limitations.

J. L. M.: From day one, President Prohens has made it clear that our electoral programme does not include the verbs prohibit, intervene, interfere or limit. In principle, what we fundamentally intend to do, within the private initiative is to take the incentive route, because we are in a free market, constitutionally recognised, and in the basic principles of the European Union, and what we cannot do is move in the opposite direction to where the whole Union, of which we are part, is moving.
All these measures we are talking about are fundamental to providing incentives and affordable housing for Balearic residents. These are our essential measures. We are going to provide our residents, the citizens of the Balearic Islands, with the best possible way of acquiring affordable housing. Everything else, for example, limiting the price of rents… we have learned, in news just two days ago, that these measures are not having any effect in Amsterdam, in Barcelona, or in North American cities such as San Francisco. While this may initially appear to be a well-intentioned measure, the result has been the opposite of what was initially intended. The offer has increased, prices increase and we find ourselves with the same problem but worse.

LLAD: In this legislature, the Housing Bureau has already met several times. The sector was buzzing at the beginning of this legislature. How about now? What are relations like with developers, builders and the real estate sector?

J. L. M.: The truth is that in these first few weeks at the Consellería I have had the opportunity to
meet all of them individually, because I want to get to know all the actors involved in this roundtable. And not only developers, builders, but also trade unions, or any participant that is ultimately involved in this problem. The first thing to do is to listen, to attend to the demands that each sector has, sectoral demands that work with a certain product. In the case of developers, they are looking for land to build on; in the case of builders, along the same lines; architects, trade unions, are also looking to defend the general interest and defend workers’ rights. And I think that in the end we must continue, of course, with the work of the Housing Roundtable, which in the previous legislature had not met and now we have finally had two meetings in barely a year, continue along this path and try to bring together the various interests and know that there is a single common interest that overlaps the entire Autonomous Community and that we must all pursue and that is achieving accessible housing for the citizens of the Balearic Islands.

LLAD: Well, that’s a tough challenge, it’s your first few weeks, so keep up the good work, I guess you’ve got the strength to get there for now. And well, to finish with some very important things, you are a basketball man, how are things basketball-wise in the Balearic Islands?

J. L. M.: Basketball, another one of my passions, yes, the truth is that I would love to have an ACB team, this is what we would like, what we would all like. I have always believed that
basketball is a wonderful sport, which has given me nothing but joy and the truth is that it has always worked very well in the Balearic Islands. And for me, and I am talking mainly about what I have enjoyed since I was a child, it is a training sport that transmits magical values. I have had very good coaches, and from them you not only learn how to play basketball, for me the most important thing they have taught me is a way of making decisions, based on teamwork. When we talk about the team we have in this Conselleria… I learned this from basketball.

LLAD: Well, all this is going to be very much needed, we at LLAD News are going to continue, I hope you can meet with us in a few weeks to see if all these initiatives are working. Thank you very much, see you soon and good luck.

J. L. M.: Thank you, Paula, and at your disposal, whenever you want, of course, thank you very much.