The Housing law faces its final stretch without an agreement to cap rents at 3%

Decisive days to illuminate the Housing law in the Congress of Deputies.

Thomas Osborne
Thomas Osborne
10 March 2023 Friday 01:27
57 Reads
The Housing law faces its final stretch without an agreement to cap rents at 3%

Decisive days to illuminate the Housing law in the Congress of Deputies. The last big stumbling block is found in two aspects related to rent ceilings in the so-called stressed market areas. In the first place, the agreement is not possible due to discrepancies with the possibility of introducing a limitation of 3% to the rise in prices, which would replace the 2% ceiling in force until the end of the year, and, secondly, due to the inclusion of new contracts in this requirement. The discrepancies between the socialist part of the Government and its partners remain open despite the fact that this Thursday the two main representatives of the Government's economic area, the vice president, Nadia Calviño, and the Minister of Finance, María Jesús Montero, advanced a close agreement.

Thirteen months after being approved by the Council of Ministers, the state Housing law remains stagnant. The last significant advance occurred on the eve of last Christmas Eve, when the Ministry of Transport admitted in writing to limit the rise in rents to 3% in these stressed areas that, normally, would correspond to large cities. In that draft proposal, as La Vanguardia has learned, Raquel Sánchez's department reflected that "the increase produced as a result of the annual update of the rent may not exceed" each year "in any case 3%."

But a few days ago the Ministry of Economy broke into the negotiations with a proposal to implement a new reference rate for rent increases instead of the 3% ceiling, which the government partners, ERC and EH Bildu, rejected. This Thursday, socialist sources pointed out that the counterproposal they will make to their partners is to maintain the 3% ceiling in 2024 and, from 2025, incorporate the new reference proposed by the Economy, still not specified. The negotiators stressed this Thursday that without an effective index they will not accept an agreement.

There is also no understanding at this time regarding incorporating price caps on new small owner housing contracts. The partners demand that the properties of individuals that enter for rent also have the obligation to set a maximum price increase, thus preventing landlords from withdrawing the homes and later incorporating them into the market to overcome the limitation.

The possibility of an imminent agreement on housing was denied by the Minister of Social Rights, Ione Belarra. "The Housing Law is very urgent, but above all it is urgent that it be a good law that includes effective rent regulation and contributes." "Unfortunately today we are no closer to an agreement than yesterday," she added. The ERC spokesman, Gabriel Rufián, also pushed the pact away.