Amongst the measures to be approved today by the Council of Ministers, Prime Minister Pedro Sánchez has included limiting rent rises to 2%. This is against a backdrop of when, in February for example, the CPI rose by 7.6%, according to the INE. This will be a temporary measure, in principle in force until June, and will differentiate between large and small landlords. If the landlord is a “large landlord”…
spain rental market
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.
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.
The state reference system for rental price indexes, which indicates that Madrid, Barcelona, Malaga, Valencia, Malaga, the Canary and Balearic Islands are the main “stressed” areas, has 11.2 million data on rentals for the last four years. It will be updated annually with information on 1.7 million properties and 33,662 census sections.