The Government is progressing in its intention to intervene rental prices. The Minister of Transport, Mobility and Urban Agenda, José Luis Ábalos, announced today in Congress the publication of Rental Price Index by the end of March. This tool will allow a more reliable and robust analysis of the situation, since it will use census and non-survey data, as reported by the department. This index is basic to the strategy agreed by the PSOE and We can intervene in the rental market. Last December, Pedro Sánchez and Pablo Iglesias agreed to curb the price hikes in certain areas. According to the document agreed upon then, with the aim of curbing “abusive rent increases” in the most stressed areas, the autonomous communities and town halls will be enabled so that, based on the State System of Reference Prices Indices of the Rental of housing, can put “ceiling” to the rises through a price index according to an “objective and subject to periodic review” methodology.
In his response to a parliamentary question raised in Congress, the minister said that “The Government faces the right to housing as a basic pillar of the welfare state” and has called for dialogue between all agents, social organizations, private sector and other public administrations. In this context and exposing the measures to be taken, the head of the Department has affirmed that work is being done within the framework of the investiture agreements and that the first thing is to recognize that “we are facing a matter of social urgency”, as Justice has corroborated in a recent ruling that endorses the Royal Decree-Law of March 1, “which introduced more than 20 measures that give tenants greater security and guarantees, greater certainty and limited the increases in contracts to the IPC.”
In this sense, Ábalos has detailed that the investment in housing policies, according to Eurostat data, is located in Spain around 0.11% of GDP, (data from 2016, last published by said agency) well below the European average located at 0.57% or France at 0.82%. To alleviate this situation, the minister has pointed out the need to design a medium and long term strategy based on the increase in the supply of rental housing, especially around social rent, with a battery of measures such as increasing the supply of housing , new or rehabilitated, at an affordable price; improve incentives and grants to landlords and tenants and facilitate regulation that limits the rise in rental prices, especially in certain stressed areas.