Rents will continue to rise but up to a maximum of 2% during 2023

The rental price will continue to rise next year although the increase will be limited to a maximum of 2%.

Thomas Osborne
Thomas Osborne
27 December 2022 Tuesday 23:33
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Rents will continue to rise but up to a maximum of 2% during 2023

The rental price will continue to rise next year although the increase will be limited to a maximum of 2%. There will be no freezing of what is paid for rents. In fact, this year's experience shows that when an increase of up to 2% is allowed, the vast majority of landlords raise that maximum percentage. What has been established is that the contracts that expire until June 30 will remain in force for an extraordinary six additional months.

The objective of the measure is to avoid the disproportionate increases that sometimes occur when a contract ends after five years. Now those contracts become "de facto" five years and 6 months.

The decision finally adopted goes against the price freeze that Vice President Yolanda Díaz and Podemos have been asking for for weeks. In the end, with regard to prices, the agreement with EH Bildu to limit increases to 2%, which is already in force, has been imposed.

Some studies have detected for some time that high rental prices are driving certain groups out of the market. A report from the Fotocasa real estate rental and sale portal detected in a survey that there were fewer and fewer tenants with an income of less than 1,000 euros. If in 2021 the mileuristas represented 16% of the total, this year they are 12%. In contrast, landlords with income between 2,000 and 2,500 have gone from 12% to 14%.

From another of the rental advertisement portals, Idealista, its spokesman Francisco Iñareta indicated yesterday that the announced measures "not only discourage the appearance of new homes on the market, but also pushes many more owners to remove them from it and put them up for sale." ”, reports Servimedia.

The general director of the Association of Rental Home Owners (AsVAl), Nuria Andreu, rejected the measures and assured that they harm vulnerable families looking for a home.

The Madrid Tenants Union and the Llogateres Union recalled that the increases this year are 12% even though the legal ceiling of 2% is in force.

The Platform for People Affected by the Mortgage denounced that "the Government maintains a housing policy based on large announcements of short-term temporary measures, which, although they may alleviate some situations, still do not comply with Spain's international commitments in terms of Rights Humans". The Government approved yesterday also to extend for half a year the prohibition to evict vulnerable families.