The new rent decree will not regulate prices either

The new rent decree will not regulate prices either


The draft of the new royal decree housing law in which the Government works, and for which it has already practically closed an agreement with Podemos, does not include any measure referring to the regulation of the price of rents, although it does establish a mention to some reference price indices. In addition, according to sources of the negotiation explained to Efe, some of the novelties that collects the text in which the Executive works, and for which it is looking for the support of PNV and PDeCAT, focus on the evictions. In fact, it is proposed to modify the Civil Procedure Law to specify in these cases the exact date and time of the eviction. It is also proposed to extend one month more, up to three months, the postponement of eviction in the case of legal persons, although it is maintained in a month for natural persons. In addition, the courts must inform the social services about eviction procedures to check situations of vulnerability.

Although no measures are included to regulate the prices of rents, the new text in which you work does mention the reference price indices, both state and autonomous. The draft says that, on the index to be approved by the Central Administration, the autonomous communities may develop their own indices to develop their housing policies. However, from Unidos Podemos they argue that this point would not serve to regulate prices. For this, a modification of the Urban Leasing Law (LAU) would be required, since it is in this law that it is established that the prices are fixed by mutual agreement between the leased and the lessee.

Another novelty of the text in which we work is related to the variation of rental prices, which will be made in accordance with the IPC mandatory for all contracts. The previous text established in this sense a pact between the parties, except in the leases of reduced rent. On the expenses of formalization and the management of the contract, the new decree contemplates that they are in charge of the legal entities. In addition, with respect to the validity of the same, in the case of contracts of 5 and 7 years must also be respected in the case of not being registered in the Land Registry.

There are also news regarding the period of notice in case of not renewing the contract. In this sense, it goes from one month to four for the tenants and from one month to two for the owners. Also, in the case of the assumptions to recover a floor by necessity of the lessor before the minimum term, in addition to the causes of necessity, which must be included in the contract, it will also have to specify which of them is the premium at the time of the comunication. Where there is no news at the moment is the duration of contracts, which is maintained in 5 years for natural persons and 7 for legal.

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