In Spainthe theme of accommodation This is something that has already become one of the three most important concerns that citizens have on a personal level. Behind the economic and health crisis, in third place is housing for more than 17% according to data from the Center for Sociological Research (IEC), which also highlights that at a general level, housing is the second most worrying issue (more than 20%), while 83.6% of citizens consider that Spaniards do not have the same opportunities to access housing. Data that reflect the real concern that exists not only when it comes to buying a home but also for the to rent out of an apartment or a house. Few young people are able to become independent and rent their first home or, in fact, Living on rent has practically become an odyssey.
Added to the weakness of the existing offer are the exorbitant prices in practically all of Spain, especially in the big cities. But it could be that by 2025 New changes occur in rents in Spain what will be important to know. Something that has to do with the regulation of rental prices and, as they say, it is something that seems to change soon. Until recently, those who paid rent for their accommodation had to comply with annual increases conditioned by the CPI. So, if there have been years when the rent has barely changed, those where inflation has increased (as we have experienced recently) have led to increases that are sometimes exorbitant and difficult to assume. However, from 2025 The National Institute of Statistics (INE) will set a new reference index to update rental contracts..
New changes in rents in Spain
With the new Public Housing Law, approved by the Senate two years ago and published in the BOE in May of this year, we have been able to see how some changes have been produced. For example, one of the first measures applied was to limit the increase when renewing rental contracts to 3%, and on the other hand, an attempt has been made to adjust rental prices in what is known as “tension areas” or “tension real estate markets” where rental prices have exceeded certain accessibility thresholds. A measure which is however only applied (for the moment) in Catalonia and which has slightly reduced property prices in some areas.
But this measure is by no means the final solution and many hope that the big change will come from the new reference index in which INE technicians work for months and that It should be ready by December this year. so that it can start to be implemented from 2025.
The INE reference index for rentals in Spain
At the moment and so far, it is not known what this index will look like or what exactly it will be based on, although it seems that it will have to take into account several factors such as the the cost of living, average salaries and the general economy of the country. However, little is known beyond the deadline for it to be ready: December 31, 2024.
What you need to know is that this new reference index for the annual updating of housing rental contracts should not be confused with the State Housing Rental Price Reference Systemalso created after the approval of the Housing Law and which refers to it. This system, launched in March, allows to set a limit on the maximum price of new rental contracts in areas declared stressed. However, its application is limited to large owners (those who own more than five or ten properties, depending on the autonomous community) or to homes that have not been rented as a habitual residence in the last five years.
But it is a measure or system that is not applied in general. In fact, the system, which provides a range of prices, although it is available throughout the country for any type of housing, has so far only been implemented, as they say, in Catalonia, the only autonomous community that has requested this declaration of stressed areas. . However, The new index will be mandatory throughout the country. And another key difference is that the already existing index was developed by a team of experts under the leadership of the Ministry of Housing, with the participation of other representatives, while the creation of the new index is in charge. exclusively from the INE.
SO, We can only wait for this new change in rents in Spain, whose contract updates will continue to be limited to 3% until the end of the year, although if the CPI is below this percentage, the CPI figure will be applied. Something that was already seen in February and July of this year, when interannual inflation fell below 3%, more precisely to 2.8%, thus marking the maximum allowable increase in rent if the renewal occurs within these 30 days, although the general limit is higher.
