1. 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.) F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 1

2. 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) F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 2

3. 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? F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 3

4. B) Rental Market Policies Rental 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 % F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 4

5. 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 F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 5

6. 2. Effects of the crisis b) 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) F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 6

7. 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 F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 7

8. 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 F UNDAMENTAL R IGHTS AND P RIVATE L AW AFTER THE L ISBON T REATY S UMMER S CHOOL 2014 8