Brussels’ proposed new housing framework has already revived calls to restrict second-home purchases in some of Spain’s most popular foreign-buyer markets, but the Balearic government has ruled out going down that road.

Calls to restrict foreigners or other outsiders from buying property have been strongest in the Balearics and Canaries, so it was no surprise that the European Commission’s recent housing proposals caused some excitement in the islands.

As I reported recently, Brussels is proposing a common regulatory framework for housing markets under pressure, with particular attention to the non-primary use of homes, including second homes and holiday rentals. The proposals could make it easier for governments that want to intervene to justify restrictions, though Brussels itself would not be imposing them.

There is an important distinction here. The Commission is not proposing to give regional or local governments new powers to restrict property purchases where they do not already have them under national law. Rather, it wants to establish a common European framework within which authorities with the necessary powers could introduce and justify measures affecting second homes and other non-primary uses.

That is potentially significant in Spain, where enthusiasm for housing-market intervention varies enormously from one region to another.

Balearic government says no

For now, foreign buyers in the Balearics need not worry about the regional government jumping through the door Brussels is opening.

The Mallorca Daily Bulletin reports that Balearic President Marga Prohens of the Partido Popular has ruled out restricting second-home purchases by non-residents, describing the idea as a non-starter.

Her position has been backed by the national PP. Deputy Secretary Elías Bendodo said the party was against such restrictions “right from the start”, arguing that the PP does not favour limiting economic growth or people’s freedom. The party maintains that Spain’s housing shortage should be tackled primarily by building more homes rather than restricting who can buy them.

That does not mean the issue is going away. The Balearics have a long-running political debate over purchases by non-residents, and Brussels’ proposals are likely to encourage those who favour restrictions. The same applies in the Canaries and potentially Catalonia, where there is considerably more political appetite for intervention in the housing market.

For foreign buyers and owners, the interesting point is that the eventual impact of the Brussels initiative could vary widely around Spain. A European framework might provide the regulatory backdrop, but what actually happens on the ground will depend heavily on who is running each region and what powers they already have.

In the Balearics, at least under the present government, the answer to restricting second-home buyers is a clear no.