Smallholders will be able to raise rents to a maximum of 10% in areas with skyrocketing prices

The Council of Ministers will approve this Tuesday the first state Housing Law of Democracy, an ambitious project that will completely revolutionize the dynamics of the residential sector. The rule will serve to articulate measures such as rent controls in stressed areas, that is, with skyrocketing prices. But as ABC announced, these will not come into force until at least 2024.

This is reflected in the draft of the project, to which this newspaper has had access. The text states that a period of a year and a half will be established from the approval of the law for “the application of this limitation referred to the reference index system, in order for the state administration to establish a system

that can be used to apply said limitations on rental prices in stressed areas ”.

The denomination of
stressed area
, essential to implement these limits, will be the work of the communities, but will have to be approved by the Ministry of Transport, Mobility and Urban Agenda. The government It establishes as requirements matters such as that the average rent or mortgage charge in the area (plus expenses and basic supplies) exceeds 30% of the average income of the households in that place.

In addition, the purchase or rental price must have risen in the last five years by an accumulated percentage of at least five more points than the CPI of that community. That is, if inflation in the area has been 1%, only places where the rent has exceeded 6% can be considered as stressed area.

More conditioning factors. A zone will be considered stressed for a period of three years, and may be extended annually. For this, the community in question will have to demonstrate that it has carried out certain measures to correct
rental market imbalances that have not worked

Within these areas, the large holders will not be able to raise prices. The Government understands by large holder those owners with more than 10 homes or 1,500 square meters, although it will give freedom to the regions to establish “additional criteria” to this definition.

Small owners, for their part, will be able to raise prices up to 10%. Although in principle a rent freeze was contemplated in these cases, landlords will be able to raise the rent if they can prove that they have rehabilitated the house in the previous two years, improved its accesses or sign a ten-year contract with their tenants.

Surcharges of up to 150% on the IBI

Regarding empty houses, the town councils may demand a surcharge of up to 50% of the liquid tax of the IBI. The Executive shall understand an empty dwelling as one that remains unoccupied without just cause for more than two years as long as it belongs to an owner with four or more dwellings for residential use.

However, the surcharge may reach 100% if the period of unemployment is greater than three years “and can be modulated according to the period of time of unemployment”.

In addition, city councils may increase the corresponding surcharge percentage in accordance with the aforementioned by up to 50 additional percentage points in the case of properties belonging to owners of two or more properties for residential use that are unoccupied in the same municipality. In total, a 150% surcharge.

In any case, the following causes will be considered justified: temporary transfer for work or training reasons, change of address due to dependency or health or social emergency reasons, properties destined for second residence housing uses with a maximum of 4 years of continuous unemployment, buildings subject to work or rehabilitation actions, or other circumstances that prevent its effective occupation, that the home is being the subject of a litigation or cause pending judicial or administrative resolution that prevents the use and disposal of the same or in the case of properties whose owners, under market conditions, offer for sale, with a maximum of one year in this situation, or for rent, with a maximum of six months in this situation.

Housing Advisory Council

Beyond the specific measures, the draft law also contemplates the creation of the Housing Advisory Council, a collegiate body “of a technical nature” in which future legislative changes in the field of housing will be debated.

The intention of the
is that representatives of the different ministerial departments with competencies related to housing, business associations, professional associations and associations, financial entities, third sector associations and associations representing interests affected by the law participate in this new body. In addition, different professionals who are experts in housing matters, as well as in the university and research fields, may also be part of the Council.


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