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Right to Housing and Relevant Policies

• 1. Right to housing as social fundamental right• - Freedoms v social rights?• - Constitutional basis? • - Italian Constitutional court n. 404/1988: right to

housing as inviolable human right, means to grant human dignity and ‘substantial’ equality (arts. 2, 3 Constitution)

• - Right to housing as elementary precondition to enjoy human fundamental rights (art. 2, 3, 32, 29, 30 etc.)

FUNDAMENTAL RIGHTS AND PRIVATE LAW AFTER THE LISBON TREATY

SUMMER SCHOOL 2014

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International Conventions/Treaties/Charters

• Art. 25 Universal Declaration of Human Rights• Art. 31 European Social Charter• European Convention of Human Rights (ECHR)• European Charter of Fundamental Rights (art.

34)• Art. 6 EUT No vertical harmonization;

‘diagonal’ effects of EU law on housing policies (ex.: freedom of movement, non-discrimination)

FUNDAMENTAL RIGHTS AND PRIVATE LAW AFTER THE LISBON TREATY

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A) Right to Housing: Judicial Enforcement

• Constitutional Court n. 404/1988: Unconstitutionality of art. 6 L. 392/1978

• Cassazione n. 14343/2009: is a clause of a tenancy contract prohibiting to host people other than members of the family void?

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B) Rental Market PoliciesRental Affordability as Emergency

• •1. Historical Background:• a) Home ownership favor legis • •High home-ownership rate: 70% • •Reasons: Speculative bubble (1997-2008); Political choices – recent

examples: housing taxation• b) Decreased investments in public housing since • 1980 • c) Liberalization of the rental market since 1998 • (Lease Act): free market rents, or, AS AN • OPTION, ‘fair’ rents negotiated by the most • representative landlords and tenants associations • increase of market rent levels : 1993-2008: + • 56% ; •2002-2012: + 130 %

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2. Effects of the crisis

• a) Crisis of the housing market: • –Drop in housing sale transactions: - 30% • –Drop in sale prices: -25% • –Drop in loan transactions • –Introduction of a new heavy housing • tax (2012), abolished in 2013, reintroduced in

2014

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2. Effects of the crisisb) Crisis of the Rental Market

• Crisis of the rental market:• -Drop in rents (-3,6% per year), however no • collapse as sale prices; • -High rate of vacant dwelling (7,5% of the total • number of private residential tenures) • - 2011: new rent tax (fix rate instead of • proportionate to the personal income burden). • favourable for high-income owners

• •Drop in rental transactions: - 30% in 2012 • •Increase of eviction notices: + 60% in 2007-• 2012 • •Increase of squattings (+ 30 000 in 2012-2012 • in Rome)

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3. Recent measures to cope with the crisis

• •Loan subsidies (around 2,5 billion euros); • •National rent supplement scheme (about 60 • million euros in 2014-2015); • •Subsidies for innocent tenants in arrears • (about 40 million euros in 2014-2015) living in • densely populated municipalities; • •Suspension of eviction procedures in densely • populated municipalities up to 31.12.2014

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4. Home subsidies: short term and long term perspectives

• Baldini and Poggio Housing Policy toward the rental • sector in Italy, (2010): rent supplement scheme more • efficient and better targeted than social housing

• Critical remarks

• Short term perspective: money allowances grant • immediate relief to low-income households

• Long term perspective:

• Subsidization of landlords; keeping up market rents

• Alternative suggestion: better mixture among home • ownership, social housing, private rental sector

FUNDAMENTAL RIGHTS AND PRIVATE LAW AFTER THE LISBON TREATY

SUMMER SCHOOL 2014