Media Spain will not have ceilings on rental prices

by time news

2023-04-29 08:14:28

The Housing Law It is mandatory for all the autonomous communities, they emphasize from the Ministry of Transport, Mobility and Urban Agenda (Mitma). But the reality is that its effects will be uneven depending on the region in which you live because one of the measures that can have the greatest impact, the limitation of rental prices in stressed areass, will not apply to all.

As they recognize from the Mitma, the declaration of these zones will be “optional” for the autonomous communities. And the ones that governs the PP -Andalusia, Castilla y León, Murcia, Madrid and Galicia, are the ones where more than 22 million people live- have already announced that they have no intention of resorting to this figure. A decision that, from the ministry, they do not understand. “We do not understand that some autonomous communities do not want to apply stressed areas so that the homes refer to market prices and include tax benefits for owners,” they say from the ministry. The idea of ​​the Government, they insist, is that in these areas the prices adjust to those of the market. «We try to avoid that when someone ends a contract, the owner intends to raise the contract by 30% or 40% because that is indeed market speculation. It is about trying to reference the prices to those of the market »they add.

The declaration of these stressed areas, which can only be requested by the autonomous communities, entails that homeowners reduce rental prices in these areas – which can include an entire municipality if so determined by the autonomous community that requests it from the ministry- can benefit from tax deductions that can even reach 90% in personal income tax.

At the moment, what is not clear is when the first of these stressed areas can begin to be declared. From the Mitma they explain that the communities will have to request it through a regulated procedure once the Housing Law is approved after passing through the Senate. And this process takes a time whose deadlines do not require for the moment from the department.

It is also not clear when the price reference index at which large holders -those who have at least five homes in the affected area- must link their rents. From the Mitma they specify that the tool that was developed when José Luis Ábalos was minister based on the data on rentals from the Tax Agency, and that right now collects data from 2021, would serve as a base, but that they need to refine it. “It must be updated to bring it closer to existing prices as quickly as possible in coordination with the autonomous communities”they limit themselves to affirming from the Government, which they add that they will try to standardize it with others already existing in some autonomous communities such as Catalonia.

It is also pending new index that will replace the CPI to revalue rents in general that will come into force in 2025 -next year the increase limit will be 3%-. From the Mitma they assure that this new indicator will take into account the particularities of each home and will not be limited only to the square meters that a home has so that, in this way, it collects its particularities and is as fair as possible.

Regarding evictions, from the Government they specify that their tightening will only affect large holders.

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