The rental market in the country has been under constant stress due to rising inflation and increasing rental prices. This has led to a decrease in citizens’ purchasing power and difficulties in making ends meet.
The Government, in an effort to address this situation that affects many families, has implemented a series of measures over the last few months.
These actions seek to alleviate the financial burden of those who rent housing and in particular, those who live in the main cities of the country, such as Barcelona, Palma, Valencia, Malaga, Alicante, Madrid, San Sebastian and Las Palmas de Gran Canaria.
Rent costs account for 36% of payroll
According to a report published in La Información, during the third quarter of 2023, 15% of the population in Spain, specifically those residing in the aforementioned cities, will allocate an average of 36.7% of their income to paying rent for their homes.
These figures reflect a troubling reality: rental prices have been rising steadily, creating an additional burden amid cost-of-living and gasoline price increases.
Moreover, this situation has led to a significant disparity, as the increase in rents in these cities represents a 4.1% increase.
Regulation
To address this problem, the government has announced significant changes to rental regulations. In a generalized context of rising rental housing prices, a series of measures have been established to facilitate the monthly payment of rents.
First, a 2% limit has been set for increases in lease revisions through the end of this year. This means that rental property owners will not be able to increase the rent by more than 2% in contractual reviews.
The measure is intended to prevent excessive increases and provide tenants with greater financial stability.
In addition, an extension obligation has been established for contracts expiring before June 30. These contracts will be automatically extended for six months, provided that the tenant so requests.
The exception to this rule is if the owner needs the property for personal use, for family members or for his or her spouse. This automatic extension of leases will provide tenants with a higher degree of residential security.
On the other hand, those tenants with lower incomes and monthly rents of up to 600 euros have the option of applying for financial assistance, provided they meet certain economic requirements.
These subsidies are administered by the autonomous communities and are granted according to the individual circumstances of each applicant.
