The Government closes the housing law with caps of 3% on all rentals

The Government has managed to close with ERC and EH Bildu the negotiations of the housing law in which limitations on all rental prices will finally be included.

Oliver Thansan
Oliver Thansan
14 April 2023 Friday 02:24
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The Government closes the housing law with caps of 3% on all rentals

The Government has managed to close with ERC and EH Bildu the negotiations of the housing law in which limitations on all rental prices will finally be included. After almost three years of intense negotiations (the first agreement in the coalition was closed in October 2020 with the approval of the first Budgets), one of the most important projects of the legislature will have the final green light in Congress in the coming weeks, coinciding with the run-up to the regional and municipal elections.

The agreement was advanced this Thursday afternoon between the socialist wing of the Government with ERC and EH Bildu. The Republican spokesman, Gabriel Rufián, was a prominent interlocutor with different ministers. The position of both parties, regular partners of the Executive and the only ones with whom the rule could be carried out, has been key to reaching the final pact. In the case of the Republicans, the limitation of rents in these stressed areas opens the door to serve as an umbrella for the law of the sector in Catalonia, a rule that was appealed by the central government before the Constitutional Court.

The limitation on increases in all rents will be 3% as of 2024, once the current 2% cap ends, according to sources from the negotiations, who ensure that the measure is taken "to avoid uncontrolled increases in the rents".. "The increase produced as a result of the annual update of the rent may not exceed" each year "in any case 3%", it can be read in the proposal that now has to undergo a final wording.

As of January 1, 2025, a new index will be created in these terms, more stable and lower than the evolution of the CPI, which will cap the increases in income due to annual renewal, the agreement includes.

In the housing law, the definition of "large holder" of housing is also lowered from 10 to 5 properties. The autonomous communities may, depending on their powers and taking into account their respective realities, reduce the status of "large holder" of the 10 properties established by the Government project to the 5 properties that will finally be included in the law.

It has not been an easy few weeks. The agreement to limit rents to 3% had been on the negotiating table for several weeks until, approximately a month ago, the Ministry of Economy burst in with a proposal to establish an alternative reference index. This approach received the direct rejection of ERC and Bildu, who demanded a return to the ceilings to advance in the talks.

The ERC deputy, Pilar Vallugera, and the deputy spokesperson for EH Bildu, Oskar Matute, and the Republican Group deputy, Pilar Vallugera, plan to explain the details of the agreement reached with the Government in an appearance this Friday.