Rent price regulation with the new benchmark index
This past week we have been awaiting the publication of two important resolutions that will affect the housing rental market in Catalonia and whose application was pending after the approval of the State Housing Law, in force since 26 May 2023, which amends the Urban Leases Law to limit rents:
The Resolution of the Department of Territory of the Generalitat de Catalunya, by which various municipalities are declared stressed residential market areas ("ZMRT"), in accordance with the State Housing Act.
The Resolution of the Ministry of Housing and Urban Agenda ("MIVAU"), which was to approve the Rental Reference Price Index.
On 14 March 2024, the Resolution of the Department of Territory came into force, declaring 140 Catalan municipalities as stressed residential market areas. In view of this, it should be taken into account:
- The validity of the declaration of a territorial area as a stressed residential market zone: 3 years, which can be extended annually following the same regulated procedure.
- The firmness of the declaration: the declaration is not final, as it does not exhaust administrative procedures. In this respect, various professionals and agents in the sector have already announced their intention to appeal against this resolution.
The following day, Friday 15 March, the MIVAU Resolution was published, which came into force on Saturday 16 March, establishing a new legal framework for rent containment at state and regional level. This resolution validates and declares as ZMRT the 140 Catalan municipalities declared by the Resolution of the Department of Territory of the Generalitat, to which the provisions of the Law on Urban Leases modified by the Housing Law applicable in areas with a stressed residential market will be applicable.
In an attempt to contextualise the importance of the publication of both resolutions, the well-known Housing Law, which came into force on 26 May 2023, introduced new precepts in the Urban Leases Law, with the intention of limiting the rents applicable to lease contracts signed after its entry into force, as well as the assumption of property management costs by the lessor.
However, the entry into force of its effects was conditional on the resolution of the Ministry of Housing and the Urban Agenda. On the other hand, and in accordance with article 18.2 of the Housing Act, the competent housing administrations - the regional administration - are competent to declare the "stressed residential market areas", for the purposes of applying all the measures provided for in this law.
Thus, the publication and entry into force of both resolutions makes it possible to specify such fundamental aspects as the containment of rents in new contracts, or the possibility of modifying the concept of large tenant.
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