Category: News
Prospects for Rent Increase in 2024
Economic context
In March 2022, annual inflation in Spain reached 9.8%, up from 6.1% in January. Faced with this situation, the Spanish Government implemented extraordinary measures to limit the annual update of housing rental prices , generally linked to the Consumer Price Index (CPI).
Temporary Measures to Contain the Increase
These measures were part of a Royal Decree-Law within the framework of the National Plan to respond to the economic and social consequences of the war in Ukraine. Said decree restricted the increase in income above the Competitiveness Guarantee Index (IGC), established at 2%. In January 2023, with the CPI at 5.9%, this limitation was extended.
Change in Horizon 2024
However, a significant change is anticipated in 2024. The Sixth Final Provision of Law 12/2023, of May 24, on the right to housing, establishes new guidelines for the annual update of rent in contracts subject to the Law of Urban Leases.
Negotiation Between Tenant and Landlord
According to this provision, tenants may negotiate the increase in the annual rent update. For large holders, the increase will be subject to a new agreement, with a limit of 3% annually. In the absence of this agreement, the same limitation will apply.
Additional considerations
In the case of lessors who are not large holders, the increase will be the result of a new agreement between the parties, without exceeding 3%. If there is no agreement, the increase will be subject to the same 3% limit.
Evolution of Rental Prices in the Last Decade
It should be noted that the price of housing rentals in Spain has experienced an increase of 66.2% in the last decade, according to Idealista. This increase is reflected in the price per square meter, which went from 7.1 euros in October 2013 to 11.8 euros in the same month of 2023.
Aid and Solutions for Tenants Faced with High Prices
Given the high prices, each autonomous community offers rental assistance , including specific assistance for vulnerable tenants. Likewise, there is aid for young people, such as the Young Rental Bonus , which grants 250 euros per month to those under 35 years of age with income less than 3 times the IPREM, and whose income does not exceed 600 euros (300 for rooms), with the possibility of adjustments according to the municipality.
If you need help finding a rental in Valencia that suits your needs, do not hesitate to contact ART Inmobiliaria , we will be happy to help you.
