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Changes in The Last Housing Law: What Are The News?

Changes in The Last Housing Law What Are The News - Changes in The Last Housing Law: What Are The News?

Although the first draft began in February 2022, it has been necessary to negotiate for more than a year to advance in the project. Nowadays, the last Housing Law is close to the final parliamentary procedures for its approval.

This law focuses particularly on rentals. It includes limits and incentives for property owners and measures to facilitate access to housing. It introduces significant changes that will affect the real estate market.

Main changes incorporated in the Housing Law 2023

Although the modifications introduced by the last Housing Law are many, the main ones revolve around some specific issues:

Limits to the annual update of the rent

This year, the limitation on updating rents will remain at 2%. In 2024, it will increase to 3%. Finally, in 2025, a new reference index will be established that will not depend on the CPI.

The declaration of a stressed area for housing rental gets easier

The declaration of a stressed area will depend on each region. However, it will be enough to meet one of these two requirements:

• That the price in the area has increased more than three percentage points concerning the CPI in the last five years.

• That the housing payment (mortgage or rent plus basic expenses and supplies) exceeds 30% of the average income for that same area.

Cap on the prices of new rental contracts in stressed areas

The Housing Law 2023 establishes limits on rents in stressed areas. But these vary depending on the circumstances:

• For small owners, the maximum is established at the price of the previous rental contract plus the increase in the current index (2% in 2023, 3% in 2024 and the new index from 2025).

• In the case of large holders, they may not exceed a rental price index established by the autonomous communities.

• If it is a home on the rental market for the first time, the limit established by the price reference index will be applied.

The definition of a large property holder changes

With the new law, a large holder is a person who owns five or more homes in stressed areas. Thus, the number of homes to be considered a small owner gets reduced by half.

Other novelties in the Housing Law 2023

The law incorporates other relevant changes for the real estate market:

• Prohibition of increasing the rental price by incorporating expenses such as municipal or community taxes.

• It will be the landlord who must pay the real estate commission for the service derived from the rental of the property.

Tax benefits will be applied to homeowners who rent them in stressed areas.

IBI surcharge for owners of homes that have been empty for more than two years. It would apply to owners of at least four homes.

Promotion of subsidized rental housing: new construction developments must reserve 15% of housing for social rental.

These measures will change the rental market once the new Housing Law takes effect. If you have considered renting a home, it is good timing to start the search. With Spainhouses.net, you'll have it easy. Enter your preferences in the browser to obtain a list of properties that meet your needs.

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