took more 900 days in progress Housing Law. But it was definitively confirmed this Wednesday, after getting Senate confirmation. The norm will be published with 134 support, 117 ‘no’ and one abstention. State official bulletin (BOE) will take effect on the same Thursday and thus Friday, with a full campaign for the general election. 28-MPSOE and Unidas, who have been debating the authorship of the norm for weeks, are giving election arsenal to Podemos.
After hundreds of quarrels, stalled negotiations and secret conversations, housing law emerged, the main purpose of which is housing law. regulate rental priceshas become a reality. The decisive moment was the agreement the socialists and purples signed with the two main partners, ERC and EH Bildu, trying to realize the norm. Finally, after making the protection regional powersboth entities supported the legislative text.
The ratification of the law in the middle of the election campaign is crucial, as the powers over housing are in the hands of autonomous communities. Therefore, enforcement of the majority of the regulation, such as approving stressful areas where large owners need to lower rental prices, is simply regional governments. For example, PP-administered communities have already announced that they will not use it, while those in PSOE yes. Here are all the details of the standard:
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, “More stable and lower than the evolution of the CPI“, to stop rent increases for annual renewal.
Definition of major owners
Housing law establishes a definition “big fork” as a natural or legal person who owns more than 10 properties. 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, such as limiting rental prices in stressed areas, that only affect actors considered to be major beneficiaries.
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.
Requirements for housing vacancy
The rule also slows down the procedure to execute the transaction. void of a property. Specifically, it states that requests to reclaim possession of a property will not be accepted unless it is stated first that the property “constitutes the habitual residence of the occupant”. Then the small forks land registry certificate justify the situation in question, and on the other hand, the major holders have to prove that the occupant is not real. whether he is in a vulnerable situation with the supporting documents from the competent authorities and with the consent of the defendant.
Protection of sensitive persons
Currently, the Urban Rental Act does not necessarily extend up to five years if the tenant wishes, up to seven years in legal entities. Now the rule states that the tenant can claim. an extra year that the same conditions will be maintained if a situation of social and economic vulnerability is justified on the basis of reports issued by social services.
On the other hand, it is stated that within a 20-year period, the competent authorities should have a housing stock of at least 20% of the total number of houses in stressed areas for social policies.