Ance: ‘Now a Special Economic Zone (SEZ) for housing and a 5 per cent flat-rate tax on long-term rentals’

A ‘Zes casa’ scheme to speed up interventions in areas under housing pressure and a flat-rate tax of 5 per cent on long-term rents with capped rates. These are the proposals put forward by ANCE President Antonio Ciucci during his hearing before the Senate’s EU Policies Committee to examine the regulation on the protection of the availability of housing and its affordability. A document which the building industry has not minced its words in condemning, branding it a ‘premature and inadequate’ response to a problem that requires a multi-year policy.

On the other hand, the assessment of the launch of the Government’s Housing Plan was positive, as it is seen as an initial response to the shortage of supply . Ciucci sets out the figures and speaks of ‘a significant mismatch between housing supply and demand’: suffice it to say, the head of ANCE emphasises to the senators, that ‘the building permits issued annually, which relate to both new homes and renovations, have fallen by 80 per cent between 2005 and the present day: from 260,000 a year to just over 50,000 a year’.

That is why developers are proposing a toolkit to tackle the problem. Starting with a ‘Zes casa’ scheme, such as ‘one-stop shops for housing, streamlined and predictable authorisation procedures; simplified planning amendments; a restructuring of charges for projects that create affordable housing; and preferential access to national housing funds’. But also utilising fiscal levers by introducing ‘a flat-rate tax of 5 per cent on long-term lettings with rent controls, alongside a guarantee scheme to protect property owners against rent arrears by tenants’.

The statement made at the hearing by the Association of Italian Municipalities (ANCI) focused on the issue of short-term lettings. Sara Funaro, Mayor of Florence and delegate for housing policy, gave a positive assessment of the European Commission’s proposal. This is because it grants local authorities clearer powers to intervene in housing markets under pressure.

There are, however, areas for improvement. The methods used to identify areas under stress should be more flexible. Applying the three criteria set out in the measure risks excluding certain areas: a broader range of indicators would be needed. Above all, however, cities with short-term rental regulation schemes already in place (such as Florence, Bologna and Naples) could face new requirements, risking being caught off guard by the new rules. They would need specific safeguards.