March 8, 2021

Political instability triggers the price of rents

Rental income closed June at 4.49%, the highest figure since March 2018, according to the Rent Rental Revenue Updating Index (ARCA) for Rental Insurance. In this way, a rental agreement signed in June 2018 with an income of 700 euros would be updated with this year's ARCA index at 731.43 euros. For the first time in more than a year, the interannual update of the rents should be made above 4%, a border that was not exceeded since May of last year. The company has indicated that the June figure confirms that political uncertainty and Legislative instability are negatively affecting the sector and are driving an upward trend in the prices of rental homes. The Commercial Director of Alquiler Seguro, David Caraballo, has indicated that, after several months in which the relationship enters the offer and the demand began to stabilize and in which the ARCA Index showed signs of equilibrium, "the legislative changes applied and the instability that has been experienced since the beginning of the year have reversed the trend". For Caraballo, it is necessary to encourage the offer and give them to the owners the security they need to take their homes to the rental market. "The political instability that we live leads to the opposite situation." He also pointed out that in recent months it has been detected that some owners have decided not to rent and many others have opted to raise prices. "This is a direct consequence of the legislative changes that raise the minimum duration of the contract and the impossibility of requesting sufficient additional guarantees," said Caraballo. The index data is available for landlords, tenants and professionals. In addition, to be able to update the rents in a "real and reliable" way with the ARCA index, Rental Insurance makes available to landlords and professionals the legal clause that must be included in the lease agreements.

. (tagsToTranslate) housing

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