spain rental market

The limits on rental priceson renting could have the effect of reducing supply

The Government Includes Rental Limits In New Housing Law: Large Owners To Cut Prices In “Stressed Areas”

The Spanish government has unblocked the approval of the 2022 Budget through an agreement between the two coalition parties, PSOE and Podemos, on a new Housing Law that would intervene in rental prices. Although the formulation of the text that will be sent to Parliament is not yet known, among its main points will be the obligation for large owners – companies with more than 10 homes – to reduce rental prices in those areas defined as stressed on the basis of the reference price index of the Ministry of Transport. For their part, small holders will have to maintain prices, although they will be eligible for income tax benefits of up to 90% of the reductions they decide to make. the enforcement of these measures will depend on the autonomous communities and municipalities.

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Spain Rental Market – Should There Be A Cap On Prices?

When it comes to improving the rental market, the parties in the government coalition, PSOE-Unidas Podemos, have very different conceptions. Both agree to include mechanisms to help control rental prices on an ad hoc basis and in the most stressed areas, but Pablo Iglesias’ party is demanding the establishment of limits on rental market prices, while the socialist part of the government has confirmed that they prefers to fiscally stimulate those owners who rent below the prices set by reference indexes.