The plenary session of the Senate has approved today, Wednesday, the draft Law for the Right to Housing that will allow, among other things, the limitation of rental prices by communities and town halls.
The full Senate has approved Today, Wednesday, the project of Law for the Right to Housing. This will allow communities and town halls limit rental prices.
The new measure has been the result of an agreement between the PSOE, United We Can, ERC and EH Bildu.
Main measures
Here is a list of the main measures that this new law will include:
– The limitation for rental prices
The autonomous communities may declare a territorial area as a stressed residential market area, for three years, renewable annually. This can be done as long as the average cost of the mortgage or rent (plus basic expenses and supplies) exceeds 30% of the average income, or that the price has increased at least three points above the CPI in the five previous years.
The large homeowners in the stressed area must set the rent based on the system of reference price indexes, while the rest of the owners of those areas will not be able to raise the prices of the contracts in force for three years. It should be remembered that the law establishes a “large fork” as the owner of ten or a constructed area of more than 1,500 square meters, and five or more if the properties are in a stressed area.
– Tax incentives for landlords
The deduction in personal income tax for net income from the rental of a habitual residence becomes 50%, but it modulates up to 90% in stressed areas. On the other hand, for new housing rentals to young people between 18 and 35 years old, the reduction is 70%, while for subsidized housing and for houses rehabilitated in the last two years it is 60%.
– The consumer price index (CPI) is eliminatedas a reference index for the annual update of the rent of the contracts.
– An extraordinary cap of 3% rise is setin updating all rentals for 2024.
– New index for annual price update
Before December 31, 2024, the INE will define a new index for the annual update of prices that will not exceed the CPI.
– The expenses of real estate management and formalization of the contract will be borne from now on by the lessor
– Evictions without date and time are prohibited.
– The municipalities may apply surcharges to houses that remain unoccupied
Specifically, a 50% surcharge on the Real Estate Tax (IBI) fee for those who remain unoccupied without justification for more than two years, 100% if they are empty for more than three years and 150% if the owner has several unoccupied properties. in the same municipal term.
– Changes to increase the stock of subsidized housing for rent
The reserve of 40% of developable land and 20% of unconsolidated urban land is established.
– The figure of incentivized affordable housing is created together with subsidized housing
It will be that of private ownership with urban planning and tax benefits intended for rent at reduced prices.
Source: Eitb
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