The approval of the Housing Law by the Government, as part of the Recovery, Transformation and Resilience Plan, has changed the landscape for tenants and owners. This new regulation seeks to alleviate the difficulties of access to housing for the most vulnerable groups by limiting the rental price and promoting public housing.
This past Wednesday, the Senate definitively ruled on the Bill for the Right to Housing, which means that the rule is ready to be implemented once published in the Official State Gazette (BOE). A few days before the regional and municipal elections on May 28, the Government manages to approve one of the most important laws of the legislature, after months of intense negotiations both within the coalition government itself and with parliamentary groups.
The Housing Law includes measures to regulate non-payment of rent by tenants and protects vulnerable people from possible eviction. This new regulation modifies Law 1/2000 of January 7 and its main objective is to guarantee the rights of tenants in vulnerable situations. In addition, the Government will also establish rules to regulate evictions, provide assistance in accessing affordable and social housing, and create an affordable public housing complex.
Measures decided by the CCAA of the Housing Law
The Housing Law includes a series of measures that focus on the identification of areas with a high demand for housing, which leads to the famous denomination of stressed area. The competent housing authorities will declare these areas “for the purpose of guiding public actions on housing in those territorial limits where there is a special risk of insufficient housing supply for the population, under conditions that make it affordable for their access to the market, establishing some procedural rules for their declaration for the purposes of state legislation”.
Declaration of stressed residential area
Before declaring a stressed area, it will be necessary to carry out a process of gathering information on the residential market in the area, both in terms of sales and rentals. Thus, the economic effort that households must make to obtain a home is evaluated. In addition, a public information process must be carried out that justifies the need for a specific plan that proposes measures to correct imbalances in the insufficient supply of housing for the resident population. Finally, a report must be prepared that includes the identification of the special risks associated with the formation of new homes.
In the event that stressed areas are declared, the existing contracts will maintain the general limits of increase, which will be 2% in 2023, 3% in 2024 and, from 2025, a new reference index for rent will be applied.
Before December 31, 2024, the National Statistics Institute (INE) will establish a reference index for the annual updating of housing lease contracts. This index will be followed as a limit for the purposes of article 18 of the Urban Leasing Law to avoid an excessive increase in the rent of the lease contracts.