Knowing how much the rent price can rise is one of the biggest concerns for tenants when the rent update date approaches. Although there are limitations to rent increases, 2024 begins with some significant changes we should assess.
How much can the rental price go up?
In March 2022, the Government of Spain approved a series of containment measures to alleviate the economic effects of the war in Ukraine. These included the disengagement of the rental price update from the CPI. A 2% limit was established, among other measures.
With the approval of the new Housing Law, the situation is slightly different. The reference index definitively ceases to be the CPI. However, landlords will continue to have a limit when raising the rental price. This limit has increased slightly and goes from 2% to 3%. How does it apply?
- In the case of large homeowners, the limit will be 3%. Even if there is agreement on the increase, it can never be higher than that figure.
- For small owners, the update will be agreed upon by both parties. If there is no agreement, the increase will be a maximum of 3%.
So how much can the rental price go up? To get an idea, a monthly rent of €750 would increase to €772.5, while one of €1,200 would grow to a maximum of €1,236. The landlord must report the rise at least one month in advance.
Other relevant aspects regarding rental housing
In addition to this new limit when it comes to raising the rental price, the new Housing Law introduces other changes that are worth knowing:
- Large holder: in a generic way, the homeowners with more than ten properties. Nevertheless, the autonomous communities can reduce the number to five in stressed areas.
- Cumulative increases: in the case of rents that were not updated in 2023, the increase may be cumulative. That is, the landlord could increase the rent by 2% this year plus 3% corresponding to 2024.
- Agency fees: from 2024, the tenant will not have to pay them. It will be the owner who must do so.
- New rentals: owners will be able to put their home on the rental market at the price they consider appropriate. The exception is stressed areas. In that case, the reference price will be that of the last contract plus a 3% update. If more than five years have passed, the possible increase will be applied according to a price containment index.
What will happen in 2025?
In 2024, the rental price may rise by 3%. On the other hand, in 2025, the update will follow other channels. Specifically, the Housing Law establishes that before the end of 2024, the National Institute of Statistics (INE) will have developed a reference index for the annual update of rental contracts. It will be that index that establishes the limits or requirements of the increases.
If you are looking for housing to rent, you can check prices by area and their historical evolution at Spainhouses.net. Besides, you have a wide range of rentals on our property portal. Start searching now.