April 15, 2021

The Government regulates rents, but without limiting prices – The Province

The Government regulates rents, but without limiting prices - The Province


TheMinister councilhas approved a royal decree law ofurgent measures and "absolute necessity"on housing and rental, in order toalleviate the "difficult" situationthat occurs in the market and more specifically in large cities, although it does not foresee introducing measures to intervene in market prices, something that had been agreed with Unidos Podemos in its budget agreement.

According to the Minister of Public Works,José Luis Ábalos, these difficulties in the conditions to access housing "precarize" the possibility of maintaining a life horizon, which is a "drama" for families, something that this package of measures tries to avoid.

This royal decree modifies five laws:the Urban Leasing Law, the Horizontal Property Law, the Civil Procedure Law, the rewritten text of the Law Regulating the Local Treasury and the revised text of the Tax Law on Transfer of Property and Documented Legal Acts.

Specifically, it addresses issues such as an extension of the mandatory extension of contracts from 3 to 5 years – or up to 7 years if the landlord is a legal entity – and the tacit one from 1 to 3 years, as well as limiting to two monthly payments the deposit to be demanded, that the landlord be responsible for the costs of real estate management and formalization of the contract or the elimination of the obligation to pass on the IBI to the tenant in the social rent.

However, the minister has ruled out that this decree includes measures aimed at intervening rent prices, as he had agreed with Unidos Podemos in the budget agreement, although he has not ruled out that in the framework of the negotiations for next year's Budgets can be included

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