October 24, 2020

The Government approves this Tuesday to extend the ban on evictions and rent increases for large owners until January



The Government will extend part of the “social shield” approved during the pandemic until next January 31, according to what elDiario.es has learned from government sources. The measures will be approved tomorrow Tuesday in the Council of Ministers and include the extension of the ban on evictions, under the same conditions as the Royal Decree Law, the possibility of extending the conditions of rental contracts and measures on large holders.

Large owners, who are those who own more than ten homes, will have to decide between taking half the rent or restructuring the debt in at least three years, according to the aforementioned sources. The current rule ended this Wednesday, September 30, as the ERTEs.

On the contrary, measures such as the prohibition to cut the electricity supply and the perception of the social bonus are not included in the extension. At least for now. The vice presidency for social rights, led by Pablo Iglesias, is negotiating these measures with the Treasury. The moratorium on the payment of mortgages to banks for people affected by the crisis, who have seen their taxes reduced, is not extended either.

Terms

Pending its approval and publication in the BOE, this is how the social shield would be:

  • Electric power, natural gas and water companies may cut off supply to vulnerable consumers. The March decree prohibited cutting supplies to vulnerable consumers, severely vulnerable or at risk of social exclusion, whose conditions are defined in decree 897/2017. This supply guarantee ends on September 30 and, except for changes in the negotiations, it will not be extended. Beneficiaries of the social bond whose term has expired in recent months will have to apply again (because the automatic extension ends).
  • If your landlord has more than ten stories, you can ask for a rent deferral. For this you must be in a case of economic vulnerability. If you do not reach an agreement to lower your rent, the landlord must accept that you pay half for four months or prorate the debt for three years.

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