2023-08-11 10:18:29
Those rental contracts signed during the current month of previous years (in this case August) must make the annual update of the rent to be paid, according to the Urban Leasing Law (LAU). Since last March 30, 2022, this renewal has imposed a cap of 2% on that rise, linked to Competitiveness Guarantee Index (IGC)y which will continue until December 2023.
Therefore, landlord and tenant no longer have to look at the Consumer Price Index (CPI) as a reference to update the rent, if an agreement between the parties is not reached. And if there is no agreement, this ceiling of 2% increase should be applied.
For 17 months, inflation has been above that 2% limit, except in June 2023, when the CPI closed at 1.9%. The final data for the month of July increased four tenths compared to the previous month and reached 2.3%. It is the fifth consecutive month that inflation is below 5%, although prices are appreciating again.
According to Idealista’s calculations, the main real estate marketplace in southern Europerentals that signed their contract in August will see a average increase of 175 euros per year with the current limit of 2%according to the study based on a two-bedroom flat-type dwelling.
The difference with inflation is barely three tenths, with which, if the renewal of rents had continued to be linked to the CPI, these rents would have registered a rise of more than 200 euros per year in August. The difference between one and the other of just 25 euros.
The Housing Law in force updated the terms of the renewal of contracts in the LAU, and this limit of 2% to the increase in rents will remain in force until December 31, and will be a 3% increase throughout 2024. From 2025 A new reference index will be applied to update rental income that the National Institute of Statistics (INE) and the Ministry of Transport, Mobility and Urban Agenda (Mitma) must have prepared.
This is the renewal of your rent in August in your city
The figures of the update of the rental contracts vary according to the prices in force in the local markets, AND, for example, in Barcelona, San Sebastian, Madrid and Palma, the renewal of the contract will mean more than 200 euros per year with the current ceiling of 2%.
Barcelona The city with the most expensive rents is once again the month, and the renewal of the rent in the contract will leave a new average rent of 1,122 euros/month, which will mean 264 euros more per year. In MadridMeanwhile, the increase will be somewhat more moderate, of almost 230 euros per year, to leave a new monthly income close to 970 euros. Saint Sebastian It exceeds the Spanish capital in prices, and will reach rents renewed in August of 1,020 euros, which will mean an increase of about 240 per year.
Behind, the rents in Palma They will update their rents in August by just over 220 euros a year, with a new average rent of almost 945 euros/month. Bilbao, Vitoria or Valencia still appear above the national average, which will have annual increases in income of around 190 euros.
The most affordable rents reappear in Ciudad Real (388 euros/month), the only provincial capital below 400 euros of monthly rent, where rents will barely rise 90 euros a year. From behind, appear Caceres and Cuencawith renewed prices at 418 euros and 428 euros per month, which will rise by around 100 euros per year.
In a quick comparison of how the rental prices would have been in a alleged renewal of income linked to the CPI in August, the new rents would have risen a little more than 300 euros a year in Barcelona, 275 euros in San Sebastián or 260 in Madrid. Some values that would barely mean between 34 and 40 euros more per year of difference between one index and another.
Even less, of just 15 euros of difference per year, would have meant updating the rents signed in August with inflation in Ciudad Real, Cáceres and Cuenca compared to the current 2%.
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