The mayor of Barcelona, Jaume Collboni, today signed the decree to declare the city an area with a stressed housing market, in accordance with the provisions of the new state Housing Law. With this decision, the Barcelona City Council agrees with the procedure initiated by the Generalitat to define the market areas and takes a step so that the regulation of rental prices becomes a reality as soon as possible.
The new Housing Law establishes four requirements so that a territory or a municipality can be declared a tense market area, with the condition that at least one is met. In the case of Barcelona, three are fulfilled: that the percentage of household income devoted to rent and mortgage payments, in addition to utilities, exceeds 30%, and that the increase in rental prices over the last five years is 3 percentage points higher than the evolution of the CPI.
According to the latest data, the residents of Barcelona dedicate 36% of their income to paying the rent. According to these data, from 2020, the average rental price stood at 964.80 euros per month; supplies, at 248 euros per month; and the average annual income per household, at 40,424 euros.
The rental price in Barcelona has experienced an increase of 21.1% in the last five years (from 889.60 euros per month on average in the 4th quarter of 2017, to 1,077.50 euros per month in the 4th quarter 2022), while the accumulated growth of the CPI in the same period stands at 14.6%. Therefore, the difference between the two percentages stands at 6.5 points, more than double what the law provides for being able to declare a market area you have.
The Housing Law establishes differences in the establishment of the rental price of a home depending on whether the owner is a large holder or not, that is, if he owns 10 or more homes, in accordance with the initial regulation of the Generalitat. In the case of homes with large holders, the rental price will be limited to the Generalitat's reference price index, while in the case of small holders, the price of the new contract will be set by that of the previous contract. In the event that there is no lease for the previous five years, the price will be defined by the index.
At the same time, the tense market statement provides for tax benefits for natural persons who rent their own homes. In the new lease contracts, the percentage reduction of the net yield in the IRPF will be 50%, a percentage that may be increased up to 90% in the event that the rental price is 5% lower than that of the previous contract. In the event that the home is rented to young people up to 35 years of age, the discount will be 70%.
The declaration of the tense housing market will be valid for three years, which may be extended annually as long as any of the requirements provided for in the law are met.
