March 1, 2021

Presented 2019: City councils will have tools to limit the "abusive" rise in rent – La Provincia

Presented 2019: City councils will have tools to limit the "abusive" rise in rent - La Provincia


The Government has committed to modify in 2019 theregulations of the real estate rental market"to put an end to the abusive increases in rental prices in certain areas" that are considered "stressed", as requested by Unidos Podemos, as an indispensable requirement to close the agreement of the General State Budgets (PGE) of 2019 The accounts also include a 38% increase in the housing budget.

This is stated in thedocument of 50 pages that have signed this ThursdayEarly in the morning at La Moncloa, the President of the Government, Pedro Sánchez, and the General Secretary of Podemos, Pablo Iglesias, and to which Europa Press has had access.

The agreement includes as a third point the measures related to housing, aimed at"shield your social function and avoid speculation"and, among them, it is the one to give to the City councils the capacity to intervene in the rental market to limit prices, through the necessary normative projects that the Government has committed to carry out in 2019.

The town councils will regulate the prices

Specifically, the commitment is to enable the municipalities to "declare, temporarily and exceptionally, a stressed urban market area when there has been an abusive increase in rental income from a habitual residence, which hinders its inhabitants fromaccess and enjoyment of a home at a reasonable price,and, with it, the exercise of the constitutional right to a house ".

To this end, the legislative reform will enable the municipalities to prepare a benchmark rental price index according to an objective methodology and subject to periodic review.

As stressed in the agreement, "the objective of the reference indexes is that the City Councils and / or Autonomous Regions that consider itregulate and limit abusive increases in the rental pricein areas previously declared stressed and at the same time avoid possible effects of contraction of the rental housing offer ".

The Government has also committed itself to "progressively expand the current housing budget, with 2019 630 million euros (an increase of 38%), 700 in 2020 and 1,000 in 2021."In 10 years Spain should invest 1-1.5% of GDP",add.

In addition, the Executive has agreed with We can increase by 20,000 the number of homes for rent at affordable prices, through a four-year plan, and develop in 2019 a regulation that establishes "the strictly social nature of public housing", which guarantee "exploitation only for renting particularly vulnerable people, preventing them from being sold or exploited by vulture funds and preventing them from being alienated with a profit".

This newState Housing PlanIt will also contemplate the creation of "a line of financing so that the Autonomous Regions that have so regulated it may exercise the rights of first refusal and retraction in the transmissions of acquired dwellings". "It will also contain aid to the AA.PP. for the acquisition of housing already built," they add.

It will also "establish a financing program for housing rehabilitation for rental, including small owners who rehabilitate their apartments and rent them at affordable prices," and "a SAREB Action Plan will be drawn up to guarantee the signing of agreements. with Autonomous Communities and City Councils that promote the use of housing for social rents ".

Under the agreement, the Government will also design alegal framework that defines the empty dwellingand the great "holder of housing", and make available to the CCAA and municipalities different tools for their detection and diagnosis.

This reform will be accompanied by a "specific policy" that will allow the most appropriate measures to be established in the different scenarios of the phenomenon, among which could be includedsanctions to the big holders "to mobilize empty housing".

That is, the Government is committed, as requested by We, to create "a framework where the large holders of housing collaborate with the competent administration to make available to the rental market empty housing at reasonable prices".

Finally, this section for"increase the number of homes for rent at affordable pricesand avoiding the speculative bubble "includes the Executive's commitment to promote" the parliamentary approval of the regulations that reinforce the protection of mortgaged persons, the transparency of the contracting conditions and their implications, and the attention to coordination between the judicial and judicial bodies will be reinforced. social policy. "

"A mandatory report will be established for the social welfare services in case of eviction so that the administrations can help the affected families in order to guarantee a housing alternative," they add.

Longer lease agreements

In addition, the Government and Unidos Podemos have agreed on a series of measures tomodify "the regulations of the real estate rental marketwhich affects the regulation of contractual elements such as minimum lease terms, contract extensions, guarantees or rent review ".

Among other measures, "the term ofmandatory extension of rental contracts from three to five years,and the tacit extension of one to three years for natural persons will be extended "and, in the case that the leasing party is a legal person," will be 7 years of mandatory extension and 3 of tacit ".

The agreement includes that "if the expiration date of the contract, or any of its extensions, after a minimum of five years of duration in the case of natural persons or seven years in legal persons, none of the parties had notified to the other, at least six months prior to that date, its willingness not to renew it, the contract will be extended for another three years. "

Also "it will be established that there will be noagree on additional guarantees to the cash depositup to a maximum of two monthly installments of the rent ", and that the costs of real estate management and formalization of the contract will be borne by the lessor, in the cases in which the lessor is a legal entity".

Likewise, it is agreed "that the right of the landlord to recover the property before the legally established period should be included in the lease contract, in such a way that the stability for the tenant is promoted and the conditions of the contract are transparently known".

Finally, "the possibility that the competent Public Administrations exercise thetrial and retraction rightswhen the rented dwelling is sold jointly with the other dwellings or premises owned by the lessor that are part of the same property and when they are sold jointly by different owners to the same buyer all the floors and premises of the property ".

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