Among other things, Spain has a problem with the price of housing and the government of Pedro Sanchez It’s about not being able to find the solution to an evil that affects young and old alike. In order to put an end to this complication, the new housing regulations which modify the rental law seem to put more obstacles in the way of owners and even encourage squat. All this in exchange for favors for tenants, who in some cases have more rights but nothing has had an impact on their pockets.
Last May, it was published in the Official State Gazette the new housing law that the government has put so much effort into called Law 12/2023 of May 24 for the right to housing. These reforms included in the Recovery, Transformation and Resilience Plan seemed to be the panacea but so far they have not translated into positive results for any of the main stakeholders. If anything for investment funds.
“The law includes measures aimed at increasing the supply of housing at affordable prices, preventing situations of tension in the rental market and supporting young people and vulnerable groups in accessing housing,” specifies the law. Government through its website, on the boon of the new rule in which an attempt is made to set a limit on the rental price with an annual maximum of 3% in contracts in force in 2024 and an update is promised for 2025.
Rent law protects tenants even if the owner does not want it
These changes in the tenancy law They have their fine print and in one of their sections it is indicated that tenants who rent accommodation can stay there even if the owner does not intend to renew the contract, or at a certain time, even s ‘They didn’t pay. Bigger words.
This is explained by Ministry of Housing and Urban Agenda via its website, in which it specifies that in contracts signed from March 6, 2019, if the agreed duration is less than five years in the case of a natural person, or seven years if it is signed by a legal entity, it will be automatically extended to complete this period even if the owner of the accommodation is not in the process of renovating. In the case of longer contracts, it will also be automatically extended. This is done in order to avoid indiscriminate price increases by certain lessors.
“For contracts signed from March 6, 2019, if the agreed duration is less than five years, when the lessor is a natural person, or seven years, if it is a legal entity, the contract will be automatically extended until reaching these five or seven years, for annual durations”, specifies the Ministry of Housing and Urban Agenda via its website. It also specifies that: “The extension will not take place if the tenant (tenant) communicates to the lessor (owner) at least 30 days before the end of the agreed duration or one of its annual extensions of its intention not to not renew.” In the absence of notification, “the contract will be extended for annual periods up to a maximum of three additional years”.
The ministry also emphasizes this tenancy law that the tenant will remain in the rented apartment as long as he respects the conditions agreed in the initial contract and is up to date with his payments. In the event of a vulnerable situation, and as long as the tenant demonstrates to the judge that he cannot pay due to serious problems, the eviction may be temporarily suspended and thus continue in the accommodation. According to the rule, in the event of proven situations of social or economic vulnerability, tenants could resort to the “extraordinary extension” which can last up to one year.
These changes to rental law came about in an effort to provide more protection for tenants and stop the trend of rising house prices, but for now…neither.
