HE The coalition government has reached an agreement CKD and together EH Bildu about housing law stranded for so many months. Almost three years after the PSOE and the Unidas Podemos Executive Board tabled the need to regulate rents, and after dozens of squabbles, socialists, morons, and parliamentary partners have closed a text with significant changes to the norm approved by them. Council of Ministers. Next, the keys to this law:
Rent increase limit
The regulation eliminates the CPI as a reference index for income updating. At the beginning of 2022, the Government approved a 2% limit for annual income reviews so that it would not be updated with the then skyrocketing 7.6% CPI in February last year. This 2% cap was maintained through 2022 and will be in effect through 2023. Agreement reached includes increase in 2024 up to 3%and after that a new directory will be created where these increments should be set. This index, which will be prepared by the National Institute of Statistics (INE) before 2025, should be “more stable and lower than the development of CPI” in a way to limit income increases due to annual renewal. .
Definition of major owners
Housing law establishes a definition “big fork” as a natural or legal person who owns more than 10 features. However, they agreed that this figure could increase further in stressful market areas. reduce to five. This decision must be taken by the autonomous communities “according to their strength and taking into account their own realities”. This will affect the implementation of some of the measures enshrined in the law that only affect the actors considered as major beneficiaries, such as limiting rental prices in stressful areas.
Stressful market areas
Most of the standard’s measures apply in areas declared as follows: stressed housing market, places where there is a shortage of housing in favorable conditions. At the request of each community, it will be awarded by category. three years to areas where the average mortgage or rent plus the cost of utilities exceeds 30% of average income where a house or price rises At least 3 points above the CPI in the last five years Only one of the two conditions must be met.
ceiling price
Small beneficiaries who rent flats in the highlighted areas and within the validity period of the declaration they won’t be able to raise prices except for the built-in update (2% in 2023; 3% in 2024 and later established by the index) when making a new contract. The text includes the exception of an increase to: 10% if the house is activated at a cost of at least 10% of the purchase value of the property.
Discounts for big forks
Large property owners, whether natural or legal persons, must lower the rental price in these stressful areas. Rental price when signing or renewing a contract the maximum limit set in the reference price index Ministry of Housing.
price new unrented houses in the last five years, whether from small or large owners.
bonus system
To encourage smaller owners in distressed areas to lower prices, the regulation includes a personal income tax credit system: 90% if the rent is reduced by five percent; between 70% If it is rented to young people between the ages of 18-35; between 60% if the dwelling has been the subject of rehabilitation actions in the last two years. If any of the conditions are not met, the bonus fifty%.
Tenant Protection
The standard will include: Real estate management expenses and formalization of the contract will always be borne by the lessor.. In other words, those who are looking for a rental flat will not have to pay the monthly rent demanded by the real estate agent. In addition, it is forbidden to increase rental income through new expenditures.
evacuations
The agreement includes the following measures: protection against evictions. On the one hand, evictions without a predetermined date and time are prohibited and include new extensions to eviction procedures and mandatory access to out-of-court settlement procedures for the vulnerable. In addition, funds from government housing schemes can be used to offer housing alternatives.