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- 02/05/2023
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New Spanish Housing Law with rent cap and the final farewell to IPC across Spain for property owners
In Spain, in March 2021, the government passed a new housing law that included several measures aimed at protecting tenants and promoting access to housing. One of the most notable measures of the law was the introduction of a cap on rents in areas where the market is tense, that is, where rents are well above what would be reasonable given market conditions.
The rent ceiling would be established based on a reference index determined by the autonomous communities and taking into account factors such as surface area, age or location of the property. The aim of this measure was to curb the rise in prices in the rental market and make rents more affordable for the population.
However, after the law was passed, the government did not obtain the necessary support for its definitive approval in the Congress of Deputies, and the law remained suspended. Currently, the rent ceiling remains a measure pending application in Spain.
Regarding the elimination of the CPI in rental contracts, this measure was not included in the housing law passed in March 2021. However, the government has expressed its intention to introduce this measure in a future reform of the housing market in Spain. The idea is that, instead of using the CPI as a reference for updating rent prices, a specific index for the rental market should be established, which better reflects the particularities of this market.
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