The new rental reference index published today by the Ministry of Housing substantially reduces a good part of the prices offered in the most central areas of Barcelona (Catalonia is the only autonomous community that is willing to apply it) and Madrid. The reference information that the Government will offer has a maximum price limit that is well below the homes offered on real estate portals.
Some examples: a home in Barcelona located on Valencia Street is currently being offered on real estate portals at 1,600 euros per month. The maximum range of the state index lowers that lease to 984 euros. Another home on Madrazo Street in Barcelona is currently offered at 1,172 euros per month and, however, the maximum range of the index lowers it to 847 euros. Finally, a residential property on Sant Crist street is offered at 1,827 euros per month and the index places it at 951 euros. These are discounts of more than 40% of current prices, a difference that in Madrid, in certain homes, reaches 60%.
The index will only be mandatory for large homeowners and for new contracts that enter the market. A large homeowner is considered one who owns 10 or more properties. However, the autonomous community can reduce this consideration to natural or legal persons with 5 properties. Small owners with a home in a stressed area, for their part, will have to reference their rents to the price of the previous contract.
The index will reflect rental prices in census sections throughout the country, covering between 500 and 2,000 inhabitants. This mapping has resulted in an initial range based on the location and size of the home. Below, more precise data has been incorporated regarding the constructed area, state of conservation, elevator, parking, year of construction, whether the home is furnished, height of the building, energy certification, community areas, swimming pool, counseling, special courts... This is how it will be formed. a range depending on the characteristics of the homes. The best homes can be rented in the upper part of that range and the more modest ones in the lower range. The Government has opted for this scale so that a negotiation can be established between tenant and owner and also to prevent the poorest quality homes from being placed in the medium or high range, as explained by the Secretary of State for Housing, David Lucas.
The state rental price reference system will be published today, although a period of 10 business days will be opened for public consultation. From then on it will come into force in the stressed areas and the autonomous communities will be able to apply it. Catalonia, therefore, will be able to do so around March 13. The index, however, is initially published with a two-year lag, since it is referenced in tax data on personal income tax returns for 2022. When the 2023 fiscal year closes, it will be updated.
The rental index is based on data from the Tax Agency, the General Directorate of the Cadastre, the National Institute of Statistics, the Bank of Spain, the College of Registrars and the Department of Economic Affairs of the Ministry of the Presidency. The Executive considers, therefore, that its data has a greater degree of specificity to know the situation of the rental market in these stressed areas since it draws on “more than 2 million data”, Lucas pointed out. It provides data from the entire country, except for the Basque Country and Navarra.
Regarding the controversy with the Generalitat, which considers that with this index prices will not go down, David Lucas has indicated that "the technicians of the Generalitat have nourished the state index" with the advantages and disadvantages of the index that was in force in Catalonia and which was declared unconstitutional. The Department of Territori demands to take into account your contributions during the next few days so that the reference prices are higher. Housing has no intention of incorporating the demands of Ester Capella's team.
