EDITORIAL |
Housing is one of the major concerns of many people and has been the subject of debate in recent years in Spain. The new housing law came into force on May 26, except for the changes in the tax incentives in IRPF for landlords, which come into force on January 1, 2024. The law aims to improve the situation of tenants and favor access to decent housing. In this article, we will analyze the main aspects of this law, from the boost to public housing to the protection against evictions, including the limitation of the rental price, improvements in the relationship between landlords and tenants and the payment of fees.
1.The objectives of the new housing law
The main objective of the new housing law is to improve access to decent and adequate housing, especially for the most vulnerable groups such as young people, the elderly and people with low incomes. It also seeks to encourage renting as a real alternative to buying a home and to promote public housing as a solution for people with fewer resources. In addition, the law establishes measures to combat speculation and abuse in rental prices, as well as to protect tenants against unfair evictions. In short, the new housing law aims to balance the relationship between landlords and tenants and to guarantee the right to decent and adequate housing for all citizens.
Promoting public housing
Another of the main objectives of the new housing law is to promote public housing as a solution for people with fewer resources. To this end, it establishes the obligation to allocate a percentage of newly built housing to social housing, as well as the creation of a state registry of social housing that will make it possible to know the supply and demand of this type of housing throughout the territory. It also establishes measures to facilitate access to public housing, such as the elimination of administrative barriers and the possibility for people in vulnerable situations to have preferential access to social housing. In short, the new housing law aims to guarantee access to decent and adequate housing for all citizens, especially for those with fewer resources.
3. Limits to the rental price
The new housing law establishes limits on the price of rent in those areas where there has been an abusive increase in prices. Specifically, it establishes that the rental price may not exceed the rental price reference index, which will be calculated based on the area, surface area and characteristics of the dwelling. This index will be updated annually and will serve as a reference for housing rental contracts. In addition, measures are established to avoid abusive price increases in rental contracts, such as the obligation to communicate the previous rental price and the prohibition to require additional guarantees.
- Tax or urban planning benefits for privately owned housing with reduced rental prices
- Declaration of stressed residential market areas for an extendable period of 3 years in order to be able to apply rent reduction measures.
- Maximum annual rent increase of 3% on current leases during 2024
- From 2025, new reference index for the annual update of leases to replace the CPI to avoid disproportionate rent increases
In areas declared as stressed:
- possibility of extraordinary annual extension for the lessee after the end of the lease term
- in new leases to new tenants, limitation of rent to the previous lease rent
- possibility of applying the limits of the reference price index systems also to dwellings that have not been rented in the last 5 years
It also establishes the possibility of approving systems of reference price indexes by territorial areas, establishing a database of rental contracts to monitor and evaluate the measures adopted.
In short, the new housing law aims to protect tenants against abusive prices and to guarantee access to decent and adequate housing for all citizens.
Improvements in the relationship between lessor and lessee.
The new housing law also establishes improvements in the relationship between landlords and tenants. In this sense, it establishes the obligation to carry out a detailed inventory of the goods delivered with the dwelling, as well as the obligation to carry out repairs and maintenance necessary to guarantee the good condition of the dwelling. . In short, the new housing law seeks to balance the relationship between landlords and tenants and to guarantee the right to decent and adequate housing for all citizens.
Protection against evictions with the new rental law.
The new housing law also establishes measures to protect tenants against unfair evictions. In this regard, it establishes the obligation for the landlord to inform the tenant 4 months in advance of his intention to recover the property for his own use or for sale. In addition, measures are established to ensure that evictions take place in a fair manner and respecting the tenants' rights, such as the obligation that the dwelling be in a suitable condition for its use or the possibility that the tenant may recover the dwelling within a period of 1 year in the event that the owner has not occupied it. In short, the new housing law aims to guarantee the right to decent and adequate housing for all citizens and to protect tenants against unfair evictions.
6.New definition of large homeowner and vacant housing.
The new housing law establishes a new definition of large property owner and vacant property in order to combat speculation and promote renting. Specifically, a large owner will be considered to be an individual or company that owns more than 10 urban properties, excluding garages and storage rooms, or a built surface area of more than 1,500 m2 for residential use. On the other hand, a vacant dwelling will be considered to be that which has not been inhabited for a period of more than 2 years. To combat this situation, measures are established to encourage the rental of these dwellings, such as the possibility of establishing a surcharge on the IBI or the possibility of expropriating these dwellings in case of need. In short, the new housing law aims to encourage renting and to combat real estate speculation by defining large landlords and vacant housing.
7.Who pays the rental fees?
The new housing law establishes that real estate agency fees for long term rentals will be paid by the lessor, even if the lessor is a private owner (not a legal entity or company). In this way, the aim is to prevent tenants from having to assume the costs derived from real estate intermediation in long term rental contracts, which in many cases represents a significant economic burden. In addition, measures are established to prevent abuses by real estate agencies, such as the obligation to publish the prices of intermediation services or the prohibition to demand additional guarantees from tenants. In short, the new housing law seeks to protect tenants against abuses and to guarantee access to decent and adequate housing for all citizens.
In summary, the new housing law aims to guarantee access to decent and adequate housing for all citizens, especially for those with fewer resources. To this end, it establishes measures to promote renting, protect tenants against unfair evictions and combat real estate speculation, among others. In short, it is a law that seeks to balance the relationship between landlords and tenants and to guarantee the right to decent and adequate housing for all.