Tension and boundaries in rent control measures
Rent increases in price-stressed areas of Catalonia will begin in February, following the Generalitat’s push for action. The Regional Minister announced the plan after meeting with the housing minister in Madrid. The central government pledged to approve the declaration, marking a key step in applying rent limits tied to the official reference price index. This framework aligns with housing law approved last May and signals a proactive stance on rental affordability for affected communities.
Across Catalonia, roughly 140 towns and cities housing about 6.2 million residents, representing 80.6 percent of the population, have been identified as high-rent municipalities. A significant share of these locations lies within Barcelona and its surrounding regions, including the major urban centers and the valleys. The Territori department has forwarded the necessary information to the central government as the August timeline dictates, allowing the administration to approve both the report and the price index for a period of three years, with the possibility of annual extensions under the same process.
Capella expressed confidence that the authority would act promptly, noting that price controls could be introduced in both well-off and economically stressed municipalities within Catalonia in the same month. Delays during the prior administration contributed to slower progress, but momentum is building under the current plan. Observers have described the situation as a tough balancing act, with evolving policy dynamics in the months ahead.
Tension and boundaries
There are two criteria that determine a stressed housing area. The first criterion considers whether the region’s median mortgage or rent plus essential living costs exceeds 30 percent of household income. The second looks at whether the rent has increased by at least three percentage points above the consumer price index in the last five years. Meeting either condition qualifies an area for protective measures under housing law.
Under the housing law, tenants in declared stressed areas may access the option to terminate their contracts after a defined period, with limited extensions available on an annual basis for up to three years under the same terms. In new contracts, rent is capped at the level of the price where the annual update clause applies to the preceding agreement. In cases involving properties with ten or more units, a cap on income prevents the rent from exceeding the maximum threshold set by the reference price index, a rule the Generalitat intends to confirm in February. This could lead to price reductions in certain circumstances.
In exceptional situations, rents may rise by up to 1000 euros or 10 percent if a rehabilitated building becomes available. Overall, rent increases in stressed areas are not expected to exceed 2 percent in 2023 and 3 percent in 2024, with subsequent adjustments tied to the annual reference index prepared by the National Statistics Institute. The ministry has reiterated its commitment to publish the Rental Reference Price Index during February as part of the rollout.
Housing authorities confirmed that the minister informed the consultative body of the plan. The Rental Reference Price Index will drive the official updates used to calculate lease adjustments throughout the year. The government has also highlighted ongoing investments under the 2022-2025 state housing plan, including allocations exceeding 200 million euros in Catalonia. Additional measures under the plan, including social rental housing programs and neighborhood rehabilitation funds, continue to be funded through European sources and state initiatives to support housing policy across the region. These efforts aim to strengthen housing stability and affordability for residents across Catalonia, with careful monitoring and periodic reviews to adapt as conditions change. [Attribution: Government of Catalonia]