The Housing Law expands the stressed areas with a rent cap and lowers the large holder to five properties

MADRID, 14 Abr. (EUROPA PRESS) -

The agreement reached by the coalition government parties and the independentistas of Esquerra Republicana (ERC) and EH Bildu to unblock the Housing Law will finally include a reduction in the concept of large holder, which will be considered as such from the ownership of five properties and not ten as up to now, and it will expand the declaration of stressed areas in the rental market, where rental prices are capped.

As stated in the agreement, presented in Congress by the spokespersons for EH Bildu and ERC, Oskar Matute and Pilar Vallugera, respectively, regarding rent increases, the rule will also maintain the 2% limit for this year, while it will increase to 3% in 2024 to, in the future, create a new ceiling.

Specifically, the CPI will be eliminated as the reference index for the annual update of the rent of the contracts, considering the parliamentary groups that inflation "has proven to be an index that can generate enormous fluctuations in a few months."

In this way, during 2023 the 2% limit in force will be applied, while in 2024 it will be 3% and from now on a new index will be created in these terms, with the aim of making it more stable and lower than the evolution of the CPI and to cap rent increases for annual renewal.

Likewise, all rentals in stressed areas "in all cases" will be regulated and capped. This will be effective for both large and small owners, as well as for real estate contracts that are already on the rental market and for new contracts.

The ceilings will be established, depending on the type of contract and property, through the indexation to the previous rent in force for small owners and through the application of the price containment index for large holders.