Sat. Jul 20th, 2019

Catalonia will regulate the rent to set a minimum term of between six and ten years and be able to limit prices

Catalonia will regulate the rent to set a minimum term of between six and ten years and be able to limit prices

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The Councilor for Justice of the Generalitat of Catalonia, Ester Capella, announced on Monday that they are preparing a bill to regulate housing rents, through the Catalan Civil Code, which will extend the minimum duration of contracts to between six and ten years and plans to limit prices.

In an appearance in the Raval neighborhood of Barcelona, ​​along with the general director of Law and Legal Entities, Xavier Bernadí, Capella explained that they are studying that the regulation establishes different conditions for individuals and companies, and that the minimum duration of contracts for the first will be lower than the second.

The new project foresees enabling the price limitation rent to the competent department for housing directly or training the municipalities to do so, and include a package of measures for the lease of real estate is made with better guarantees and to seek "the preservation of rights and duties of all parties" .

Capella stressed in his speech that the Generalitat acts in "the exercise of its own powers as a country" and that it foresees to be able to debate the law in the Parliament at the end of the year, and that the preliminary report be presented at the end of April.

Thus, he stressed that it is "the main obligation" of every political representative to deploy the legislation that wants to protect and try to improve the life of the citizenship, and it is a priority of the Government to regulate the lease contract.

«Own competences»

When asked if she fears that the central government could appeal the rule before the Constitutional Court, the councilor has asked the Executive that "respect your own competences of the Government of Catalonia ", and stressed that they are limiting themselves to applying the Statute in the framework of the development of private law.

The objective of this new norm is to exercise exclusive competence in civil law matters to contribute to access to housing and make it compatible with tourism and real estate, the department said in a statement.

According to Capella, the new decree wants to "avoid litigation when a contract is terminated", as well as the stabilization of the rental market, reducing the difference between the increase in rental prices and the stagnation of wages.

Thus, it seeks to avoid abuses such as disproportionate increase in rental cost After three years of contract, which contributes to the expulsion of the neighbors and a non-residential use of the property, Justice has highlighted.

Price increase

In Catalonia, the average rental price has grown by 29% in the last five yearss, reaching 698 euros, 160 more than in 2013, and more specifically, in Barcelona this increase has been 38% in five years.

The minimum duration of rents was five years until 2013, when It was reduced to three years with the reform of the Law of urban leases (LAU), and now the central government is pending for the second time that the Congress approves its Royal decree law to return to the term of five years.

The project of the Conselleria will incorporate the regulation of the rent of houses in Llibre VI of the Civil Code of Catalonia, dedicated to the obligations and the contracts, that already establishes the norms relative to the sale and rural leases.

The drafting work of this bill is being carried out by the Codification Commission of Catalonia, responsible for designing, developing and revising Catalonia's own civil law, which is made up of academics, notaries, registrars and lawyers, and presided over by the Minister of Justice.


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