site stats
Thursday, May 26, 2022
HomeLatest NewsThe rent becomes more expensive by more than 2% and cancels the...

The rent becomes more expensive by more than 2% and cancels the limit set by the Government.

The government has included in its response plan to the war in Ukraine a 2% cap on revaluation of lease agreements, which will remain in effect until June 30. This restriction on contracts applies to all existing contracts, regardless of the number of properties owned by the homeowner. However, the measure it does not serve to contain market prices. In fact, in most provinces, the number of rental properties advertised on real estate portals exceeds this limit.

The executive hoped that owners and tenants could agree on a modest increase even below 2%, the percentage at which the Competitiveness Guarantee Index (IGC) is found. But this indicator is already above this limit and has reached 2.75% in February, the latest data published by the National Institute of Statistics (INE). In addition, if the landlord and tenant do not reach an agreement and the contract is terminated, the tenant will face a market in which “an apartment with the same characteristics and in the same location will now be more expensive,” says Ferrand Font. director of Pisos.com studio.

According to Idealista, renting a property in Spain is on average 1.1% more expensive compared to April 2021. by province, In 39 of them, the increase exceeds the 2% set by the government for current contracts. In the Balearic Islands, renting an apartment last month was 15% more expensive than a year ago. In Girona, Huelva or Malaga, rent has risen in price by 13%. In Barcelona, ​​apartments have risen in price by 6.4%, and in Madrid – by 2.5%. On the other hand, in Lleida, Zamora, Huesca, Granada, Cordoba, Seville and Ourense, houses fell last month.

The upward trend is determined by all surveyed real estate portals. From Fotocasa they note that “March became a turning point, and apartments for rent began to rise in price.” At the national level affordable housing is 4.7% more expensive than a year ago. In March, it rose by 0.8% after several months of decline. According to data collected through homes listed on its website, four autonomous communities saw price increases of more than 10%, and only in Navarre was the rental offer cheaper. In Idealista, you can see that since October last year, rental prices began to rise.

Pisos.com data is heading in the same direction and points to a 5% year-on-year growth across the country. Font points to the Balearic Islands (+10%), the Canary Islands, Barcelona and Madrid (+7%) as the provinces that contributed to the recovery of the rental market, which has so far registered “moderate” growth. The reasons for this growth are explained by the fact that, according to Font, “the market is becoming too small.” “Remote work has not been implemented at the expected level and there is a shift in demand to cities bordering major capitals. In addition, the supply of rentals has decreased by 30-40%,” he explains as the main reasons.

Sources consulted confirm that the government’s restriction “does not affect affordable housing” as it affects existing contracts, not recently signed ones. However, they suggest that the market trend is contrary to the will of the executive branch, which intended to contain housing prices, and that they are not infected by rising prices for the consumer basket or energy products. In April, the interannual consumer price index stood at 8.4% due to lower electricity and fuel prices. However, core inflation, which excludes food and energy, rose to 4.4%.

Just as fuel continues to rise despite the government-approved rebate, the rent repricing cap is not conducive to moderate market prices. In addition, according to this newspaper, the executive branch may face litigation with private individuals for interference in the rental market. This measure involves interfering with a private contract between the two parties, and as such, legal sources claim it is a “violation of acquired rights” in city lease law.



Source: www.lainformacion.com

*The article has been translated based on the content of www.lainformacion.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!



RELATED ARTICLES

Most Popular

Recent Comments

%d bloggers like this: