The Catalan regional government, the Generalitat, plans to begin applying its treatment approach within the housing market as outlined by the new state law. If everything proceeds smoothly, the 143 cities and towns that the Government identified as under stress in August will officially be labeled as such. A last-minute adjustment—approved again by the Government—will classify landlords who own five or more homes as large owners. Defining a large owner as owning 10 or more homes would have been twice the threshold set in the countrywide framework.
The change followed nearly 50 notable claims. In June, the district conselleria announced its intention to declare these 143 municipalities under tension, spanning most of the Barcelona metropolitan area and the region’s major city centers. On Wednesday, the council member in charge, Ester Capella, disclosed that the authority decided to adjust two elements: the definition of a large owner and the terminology used for social housing promoters in the rental sector.
“We said in June that we were evaluating whether to leverage that reality for state highway permits and for the market rent economy, given the housing stock,” Capella explained regarding the decision to lower the number of homes from ten to five, thereby making a landlord a large owner.
According to a study from the Habitat Metropolis Observatory, only about 7.7 percent of all rental properties managed by the Generalitat are owned by owners with 6 to 10 homes. Without this progress, in Barcelona, once landlords with five or more homes are included, the count of large property owners would rise from about 2,000 to 4,500, according to the observatory data.
This label carries significance for several reasons. Foremost is the fact that the new national housing law prevents large owners from increasing rents in a way that would price out tenants. It caps annual rent growth and restricts increases to just over 2 percent in the current year and slightly more than 3 percent the following year, regardless of whether the property sits in a stressed area.
Additionally, the law imposes a requirement to supply more housing information than before if the government requests it. This includes identity data of the property, year of construction, renovation details, whether certain areas of the floor were used, and the energy rating, along with a detailed description of the home’s actual use. The law also states that large owners must extend leases by one year if tenants demonstrate social and economic fragility, and must cover certain real estate management costs and formalize the contract.
entry into force
After the deadline for claims passes and the two changes are decided, the Generalitat will forward all information to Madrid for the ministry’s review, including the price index and related rental implications, with the aim of implementing the rental framework in Catalonia as soon as possible. If no issues arise, calculations suggest this framework could take effect this August.
Capella noted that all required steps outlined by the law have been followed and emphasized that there is no need for a broad reevaluation of mechanisms. She highlighted Catalonia’s advantage, since it already had a domestic law on the matter, and argued that the national standard would be more open to speculation.
possible challenges
The Generalitat’s decision also implies that more than 40 claims were excluded from the norm. A question arose about whether the president of the parliament indicated potential compensation to tenants or a scenario where city councils seek inclusion or removal from the stressed-municipalities list. Capella assured that all cases have been studied and did not rule out possible court action by real estate agents or developers.
Capella underscored the urgency of establishing a framework that guarantees housing access as a fundamental right. She expressed hope that a law meeting constitutional standards will be enacted and that the courts will weigh the rights at stake, including the right of access to housing. She also acknowledged that a portion of the Catalan law had been annulled by the Constitutional Court earlier this year.
Ultimately, Capella stated that the government remains committed to ensuring that housing access becomes a priority and that the steps taken are aligned with protecting this right for citizens.