EDITING |
Housing is one of the greatest concerns of many people and has been the subject of debate in recent years in Spain. The new housing law came into effect in effect on May 26, except regarding changes in tax incentives in IRPF for the housing landlord, which comes into effect 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 promotion of public housing to protection against evictions, including rental price limitation, improvements in landlord-tenant relationships, and the payment of fees.
1. The objectives of the new housing law
The new housing law's main objective is to improve access to decent and adequate housing, especially for the most vulnerable groups such as young people, the elderly, and low-income individuals. It also seeks to promote renting as a real alternative to home buying and to encourage public housing as a solution for those with fewer resources. Furthermore, the law establishes measures to combat speculation and abuse in rental prices, as well as to protect tenants against unfair evictions. Ultimately, the new housing law aims to balance the relationships between owners and tenants and guarantee the right to decent and adequate housing for all citizens.
2. Promotion of public housing
Another main objective 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 new construction homes to social housing, as well as the creation of a state registry of social housing that allows knowing the supply and demand for this type of housing throughout the territory. Measures are also established to facilitate access to public housing, such as the elimination of administrative barriers and the possibility for vulnerable individuals to access social housing preferentially. 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 on rental prices
The new housing law establishes limits on rental prices in areas where there has been an abusive increase in prices. Specifically, it establishes that the rental price cannot exceed the reference index of rental prices, which will be calculated based on the area, the surface, and the characteristics of the housing. This index will be updated annually and will serve as a reference for rental contracts of homes. In addition, measures are established to prevent abusive price increases in rental contracts, such as the obligation to communicate the previous rental price and the prohibition of requiring additional guarantees.
- Tax or urban benefits for privately owned homes with reduced-price rentals
- Declaration of areas of tense residential market for a renewable period of 3 years to apply measures to reduce rent
- Maximum annual increase of 3% in rent for existing contracts during 2024
- Starting in 2025, a new reference index for the annual update of lease contracts will replace the CPI to avoid disproportionate increases in rent
In the areas declared as tense:
- possibility of extraordinary annual extension for the tenant after the contract ends
- in new contracts to new tenants, limiting the rent to that of the previous contract
- possibility of applying the limits of the reference price index systems also to homes that have not been rented in the last 5 years
Likewise, the possibility of approving systems of reference price indices by territorial areas is established, creating 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 guarantee access to decent and adequate housing for all citizens.
4. Improvements in landlord-tenant relationships
The new housing law also establishes improvements in the relationships between landlords and tenants. In this regard, it establishes the obligation to carry out a detailed inventory of the goods delivered with the housing, as well as the obligation to carry out necessary repairs and maintenance to ensure the good condition of the housing. In short, the new housing law seeks to balance the relationships between landlords and tenants and guarantee the right to decent and adequate housing for all citizens.
5. 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 owner to inform the tenant 4 months in advance of their intention to recover the property for personal use or for sale. Additionally, measures are established to ensure that evictions occur fairly and respecting the rights of tenants, such as the obligation for the property to be in adequate condition for use or the possibility for the tenant to recover the property within 1 year if the owner has not occupied it. Ultimately, the new housing law aims to guarantee the right to decent and adequate housing for all citizens and protect tenants against unfair evictions.
6.New definition of large owner and vacant housing
The new housing law establishes a new definition of large owner and vacant housing with the aim of combating speculation and promoting rental. Specifically, a large owner will be considered as one who, being a natural person or company, owns more than 10 urban properties, excluding garages and storage rooms, or a built area of more than 1,500 m2 for residential use. On the other hand, a vacant housing will be considered one that has not been inhabited for a period exceeding 2 years. To combat this situation, measures are established to incentivize the rental of these homes, such as the possibility of imposing a surcharge on the IBI or the possibility of expropriating these homes in case of need. In short, the new housing law aims to promote rental and combat real estate speculation through the definition of large owner and vacant housing.
7. Who pays the fees in rentals?
The new housing law establishes that the fees of real estate agencies in long-term rentals will be borne by the landlord, even if the landlord is a private owner (not a legal entity or company). This aims to prevent tenants from having to bear the costs arising from real estate mediation in long-term rental contracts, which in many cases represents a significant economic burden. Additionally, measures are established to prevent abuses by real estate agencies, such as the obligation to publish the prices of mediation services or the prohibition of requiring additional guarantees from tenants. Ultimately, the new housing law seeks to protect tenants against abuses and 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 rental, protect tenants against unjust evictions, and combat real estate speculation, among others. In short, it is a law that seeks to balance the relationships between owners and tenants and guarantee the right to decent and adequate housing for all.
