The plenary session of the Senate today, Wednesday, approved the bill for the right to housing that will allow, among other things, the limitation of rents by communities and town halls.
The full Senate has approved Today, Wednesday, the project of Law on the right to housing. This will enable communities and town halls limit rents.
The new measure is the result of an agreement between the PSOE, United We Can, ERC and EH Bildu. It passed in the upper house with no changes to the text that came from Congress and with the votes for the PSOE, ERC, EH Bildu and parties of the Confederal Left (134 votes in favour, 117 against and one abstention). The PP, PNV, Junts per Catalunya, Cs, Vox and UPN, among others, voted against.
Main measures
Here is a list of the main measures that this new law will include:
– The restriction on rents
The autonomous communities can declare a territorial area a stressed residential market area for a period of three years, renewable annually. This is possible as long as the average cost of the mortgage or rent (plus basic expenses and supplies) exceeds 30% of average income, or the price has risen at least three points above the CPI in the previous five years.
The large homeowners in the stressed area have to set rents based on the system of reference price indexes, while the rest of the owners of those areas cannot raise the prices of the current contracts for three years. It should be remembered that the law establishes a “big fork” if the owner has ten or a built-up area of more than 1,500 square meters, and five or more if the properties are located in a stressed area.
– Tax incentives for landlords
The personal income tax deduction for net income from the rental of a habitual residence becomes 50%, but modulates to 90% in stressed areas. On the other hand, for the rental of new homes to young people between 18 and 35 years old, the reduction is 70%, while for social housing and houses that have been renovated in the last two years, it is 60%.
– The consumer price index (CPI) is eliminatedas a reference index for the annual update of the rent of the contracts.
– An extraordinary limit of 3% increase has been setwhen updating all rental properties for 2024.
– New index for annual price update
Before December 31, 2024, the INE will define a new index for the annual update of prices that will not exceed the CPI.
– The costs of property management and formalization of the contract are now borne by the lessor
– Evictions without date and time are prohibited.
– The municipalities can levy surcharges on homes that remain empty
Specifically, a 50% property tax (IBI) surcharge for those that have been vacant for more than two years without justification, 100% if they have been vacant for more than three years, and 150% if the owner has several vacant properties. in the same municipal term.
– Changes to increase the stock of social rental housing
The reserve of 40% developable land and 20% unconsolidated urban land is constructed.
– The figure of subsidized affordable housing is created together with subsidized housing
It will be privately owned with urban planning and tax benefits intended for rental at reduced prices.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
