Congress passes the Housing Act on April 27, 2023 that limits rents

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The project continues with the votes in favor of executive branch partners EH Bildu, ERC, Más País and Compromís. The PNV has not yet announced whether it will abstain or vote against, after criticism of abuse of power.

The plenary session of Congress will approve the project today, Thursday Law on the right to housing agreed by the Spanish government with ERC and EH Bildu, which limit rents in stress areas and which has become one of the axes in the run-up to the regional and municipal elections on 28 May.

The central executive defends that this law will serve to contain rents, increase supply in the municipalities with the most demand and protect tenants and small owners from the “misuse of major holders and investment funds”.

It is expected that the plenary will endorse it with the support of the PSOE, Unidas Podemos (UP), ERC, EH Bildu, Más País and Compromís, the abstention of BNG and the negative vote of the PP, Vox, Cs, Junts , PDeCAT and the Canary Islands Coalition. It remains to know which side the PNV your vote: abstain or vote against. The jeltzales have denounced that the rule “invades powers”, as housing management is the responsibility of the communities.

After this initial process, the Housing Bill will go to the Senate and back to Congress for approval. final approval in May next year.

The PP, Cs and Vox believe the standard is unconstitutional in part because they believe it violates the right to private property and protects the illegal occupation of flats.

The law empowers the autonomous communities to declare a territorial area as a zone of tense housing marketif the average cost of the mortgage or rent plus basic expenses and supplies exceeds 30% of average household income or the purchase or rental price has increased by at least three points above the CPI in the past five years.

In these stressed areas, rents will be capped, depending on the type of contract and property, by indexing to the previous prevailing rent for small owners and by applying the price containment index for large owners.

Source: EITB

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